On May 4, the government lifted the ban on onion exports but imposed a minimum export price (MEP) of USD 550 per tonne.
The decision assumes significance as the commodity is politically sensitive, and general elections are underway in the country.
"The export policy of onions is amended from prohibited to free subject to MEP of USD 550 per metric ton with immediate effect and until further orders," the directorate general of foreign trade (DGFT) said in a notification.
Last night, the government imposed a 40 per cent duty on the export of onions.
In August last year, India had imposed a 40 per cent export duty on onions up to December 31, 2023.
The government extended the export ban on onion until further orders were made to increase domestic availability and keep prices under check.
India, the world's biggest exporter of the vegetable, imposed an export ban on onions in December last year.
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