The Central Government has announced the removal of the Minimum Export Price ( MEP ) on onion exports. This decision is made under the authority of Section 3 in conjunction with Section 5 of the Foreign Trade ( Development & Regulation ) Act, 1992, as amended, and in accordance with Para 1.02 and 2.01 of the Foreign Trade Policy 2023.
The amendment revises the previous notification, No. 01/2024-25 dated May 4, 2024, and introduces changes to the Export Policy conditions for onions listed under Chapter 07 of Schedule-II ( Export Policy ) of the ITC ( HS ) Classification.
Export & Import Simplified: Register for the Course Now
The Minimum Export Price ( MEP ) is a regulatory tool used by governments to establish a baseline price for exporting specific goods. It is designed to manage and control the minimum price at which these goods can be sold in international markets or the foreign countries.
The government sets a Minimum Export Price ( MEP ) to ensure that exporters do not sell their goods below a certain threshold, protecting both domestic markets and exporters from potential harm. The intention behind establishing an MEP is to prevent price erosion during periods of intense competition, thereby safeguarding the interests of domestic producers and the overall economy.
Export & Import Simplified: Register for the Course Now
These regulations can be influenced by factors such as the availability of the goods in question. Recently, the government has removed the MEP for onions, which effectively allows exporters to set their own prices for onion exports based on market conditions.
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
