Trade · 5 min read
India's Onion Export Policy Explained: Minimum Export Price, Export Duty and Restrictions
Onions are politically sensitive in India. Here is how the export rules work and how to plan around them.
Quick answer
Onions are an everyday staple in India, so when domestic prices rise the government can limit exports. The main tools are a minimum export price (MEP) below which onions may not be exported, an export duty that raises the cost of exporting, and temporary restrictions or prohibitions. The Directorate General of Foreign Trade (DGFT) and the finance ministry notify these measures. Buyers should ask their exporter to confirm the current position before each contract.
What is a minimum export price?
An MEP is a floor price per tonne. Onions may not be exported below it, so it effectively raises the lowest price an overseas buyer can pay while it is in force.
What is an export duty?
An export duty is a percentage charged on the value of onions exported. It raises the exporter's cost, which usually feeds into the price quoted to buyers.
What happens during an export restriction?
Exports may be prohibited or allowed only under specific permissions for a period. Contracts that cannot be shipped in time may need to be renegotiated, which is why a clear policy clause in the contract matters.
How can buyers protect themselves?
- Ask the exporter to confirm the current DGFT position before signing
- Agree in writing what happens if policy changes before shipment
- Keep shipment periods short and specific
- Buy in the main rabi storage season when supply is deepest
Frequently asked questions
Where are India's onion export rules published?
Through notifications of the Directorate General of Foreign Trade (DGFT) and, for duties, the Ministry of Finance. Your exporter should track them for you.
