Onion Exports – MEP on FOB Basis only

[DGFT Policy Circular No. 25 dated 22nd February 2011]

Subject: Prohibition on export of onion – Clarification for (a) MEP and (b) Export of Bangalore Rose onions and Krishnapuram onions under export licence.

Export of Onions (all varieties including Bangalore Rose onions and Krishnapuram onions) excluding cut, sliced or broken in powder form was prohibited by Notification No.13(RE-2010)/2009-14 of 22.12.2010. This prohibition on exports was relaxed vide Notification No.19(RE-2010)/2009-14 of 10.2.2011,as per which export of Bangalore Rose onions and Krishnapuram onions were placed in the “Restricted” category,to be exported under licence subject to Minimum Export Price (MEP) of US $ 1400 per Metric Ton. Modalities for issuance of export licences for such export by RAs was stipulated in Policy Circular No. 21 dated 15.02.2011. Now vide Notification No.24 (RE-2010)/2009-14 of 18.2.2011, export of all types of onion including Bangalore Rose onion and Krishnapuram onion has been allowed through the State Trading Enterprises(STEs) subject to applicable Minimum Export Price (MEP).

2      Following clarifications may be noted:

(a)   MEP would refer to FOB price per Metric Ton.

(b)   Export licences that may have been already issued by RAs for export of Bangalore Rose onions and Krishnapuram onions, between 15.02.2011 to 18.02.2011 will continue to be valid for such export.

3.     This issues with the approval of Director General of Foreign Trade.