India has lifted its ban on onion exports, effective immediately, according to a notification from the Directorate General of Foreign Trade issued on Saturday. While the ban has been lifted, the government has set a Minimum Export Price (MEP) for onions at $550 per tonne, as reported by Indian media outlets.

This decision comes amid the upcoming phases of the Lok Sabha elections, particularly in Maharashtra, a significant onion-producing region.

Last year, in December, the Indian government imposed restrictions on onion exports until March 31, 2024. However, on February 26, India granted exemptions to Bangladesh and five other countries from the export ban, up to a certain limit.

The export ban on onions was extended last month until further notice. To address the escalating onion prices, the government had earlier imposed a minimum export price of $800 per tonne from October 28 to December 31, 2023. Additionally, in August the previous year, India had levied a 40% duty on onion exports to ensure an adequate supply of the vegetable in the domestic market until December 31, 2023.