Govt Lifts Minimum Export Price for Onion, Basmati Rice Exports

Govt Lifts Minimum Export Price for Onion, Basmati Rice Exports

In a significant move to stimulate exports, the Indian government has officially removed the minimum export price (MEP) restrictions on onion and basmati rice. This decision comes as part of the government's efforts to support farmers and exporters while balancing the growing demand for these products in global markets.

The Ministry of Commerce announced this change on Friday, stating that the scrapping of MEP thresholds will help ease the export of these essential commodities, which had previously been facing restrictions due to high MEPs. The decision also follows increased pressure from farmers' groups and exporters who argued that the MEP was reducing their competitive edge in the international market.

The onion and basmati rice industries are expected to benefit significantly from this move, as the removal of MEP will allow exporters to sell their products at market-driven prices, making them more attractive to international buyers.

However, the government also emphasized that it will closely monitor domestic prices to prevent any shortages or inflationary pressures, ensuring that consumers are not adversely affected. The move is seen as a balancing act between boosting exports and maintaining price stability within the country.

With global demand for onions and basmati rice on the rise, this decision is expected to provide relief to the agricultural sector and strengthen India's position as a key exporter of these products.