Amit Shah Announces Removal of Minimum Export Price on Onions to Help Farmers
Union Home Minister Amit Shah emphasized the central government’s decision to remove the minimum export price on onions to boost exports and ensure farmers receive fair prices for their crops. In a post on X, Shah stated that the Prime Minister Narendra Modi-led government has made this decision with the welfare of farmers in mind.
Shah highlighted three key decisions:
- Removing the Minimum Export Price (MEP) on onions and reducing the export duty from 40% to 20%, which will increase onion exports and farmers’ incomes.
- Removing the MEP on Basmati rice, allowing farmers to export and earn higher profits.
- Increasing the import duty on crude palm, soybean, and sunflower oils from 12.5% to 32.5% and on their refined oils from 13.75% to 35.75%, ensuring better prices for Indian soybean farmers.
The Ministry of Commerce and Industry announced these amendments on September 13, citing robust kharif crop production prospects and favorable monsoons. The government had previously lifted the onion export prohibition on May 4, 2024, allowing exports with a minimum export price of USD 550 per tonne and an export duty of 40%.
Doubts Revealed
Amit Shah -: Amit Shah is a senior leader in the Indian government. He is the Union Home Minister, which means he is responsible for the country’s internal security and domestic policies.
Minimum Export Price (MEP) -: Minimum Export Price (MEP) is the lowest price at which a product can be sold abroad. Removing it means farmers can sell their onions at any price, which can help them get better deals.
Modi government -: The Modi government refers to the current government of India led by Prime Minister Narendra Modi. They make decisions and policies for the country.
Export duty -: Export duty is a tax that the government charges on goods being sold to other countries. Reducing it makes it cheaper for other countries to buy these goods from India.
Basmati rice -: Basmati rice is a special type of long-grain rice that is very popular in India and other countries. It is known for its unique aroma and flavor.
Import duties -: Import duties are taxes that the government charges on goods coming into the country. Increasing these duties makes imported goods more expensive, which can help local farmers sell more of their own products.
Crude and refined palm, soybean, and sunflower oils -: These are different types of vegetable oils used for cooking. Crude oil is in its natural form, while refined oil has been processed to remove impurities.