Fresh Notification on Minimum Export Price (MEP) Changes

If you export a commodity, one line in a DGFT notification can decide whether your next shipment clears customs or gets held. The Minimum Export Price is that line — a floor below which you legally cannot export a listed good.

The most recent MEP notification is on natural honey: DGFT has extended the existing floor of USD 1,400 per metric tonne (FOB) all the way to 31 December 2026. Here is what changed, what it means for exporters, and how MEP works more broadly so you can read the next notification yourself.

The Fresh Notification: Natural Honey MEP Extended

Through Notification No. 09/2026-27 dated 10 April 2026, DGFT extended the Minimum Export Price condition on natural honey.

The essentials:

The notification was issued under the Foreign Trade (Development and Regulation) Act, 1992, read with FTP 2023. It does not change the price or the HS coverage — it extends the validity of a condition that would otherwise have lapsed.

What "Free, subject to MEP" means: honey remains freely exportable — you do not need an export authorisation — but you cannot ship it below USD 1,400/MT FOB. The floor is a price condition layered on top of an otherwise open export policy.

⚠️ Watch the expiry, not just the price. This is an extension of an existing floor, the third in a chain (the earlier conditions ran to 31 December 2025 and then 31 March 2026). MEP conditions on honey have repeatedly been renewed in short windows. Do not assume 31 December 2026 is the final word — check for the next notification before quoting a long-dated contract.

Why the Honey Floor Exists

MEP on honey is a producer-protection and price-integrity measure. The stated aims are to ensure price stability in international markets, prevent undervaluation of exports, safeguard domestic beekeepers, and protect the reputation of Indian honey abroad.

The trade context matters too. Indian honey exporters have faced turbulence in the US market — their largest destination — where tariffs on Indian honey were imposed and then adjusted through early 2026. A price floor is one lever the government uses to discourage distress selling into a volatile market.

The exporter's dilemma: the floor protects the sector's average price, but it can squeeze smaller exporters trying to win volume in price-sensitive markets. If the prevailing market price sits near or below the MEP, you simply cannot compete on price for that destination — you either find a higher-value buyer or you don't ship.

What an MEP Actually Is — and What It Isn't

A Minimum Export Price is a price floor set by DGFT below which a specified good cannot be exported. It is expressed per unit (per MT, per kg) on an FOB basis and tied to an ITC (HS) code.

MEP is used to:

• Keep enough of a commodity in the domestic market when supply is tight
• Prevent the export of underpriced or low-quality goods that could damage India's reputation
• Stabilise prices for domestic producers

What MEP is not:

• Not an export ban. The goods remain exportable — just not below the floor.
• Not an export duty. You pay nothing to the government; you simply cannot price below the floor.
• Not a quota. There is no volume cap; the constraint is on price.
• Not the same as MIP. Minimum Import Price works the other way — a floor below which goods cannot be imported, used to block cheap inbound dumping. DGFT has active MIP conditions on items like certain paper and PVC, but those are a separate instrument aimed at importers.

MEP Is a Moving Target: The Recent Track Record

MEP conditions are imposed, revised and removed frequently, usually in response to domestic prices and supply. A few illustrative examples from recent years show how quickly the picture changes:

• Onions — a USD 550/MT MEP was imposed when the export ban was lifted, then removed entirely a few months later as the government shifted to supporting farmer realisation.
• Basmati rice — carried a USD 950/MT MEP that was subsequently scrapped to boost outbound shipments.
• Non-basmati white rice — went from an export ban, to a USD 490/MT MEP, to removal of the floor — three policy positions in about a year.

The lesson for exporters is structural: an MEP that applies today may be gone next quarter, and vice versa. These are among the fastest-moving conditions in the entire export policy, precisely because they respond to food prices and politics.

How to Check and Comply With an MEP

1. Find your product's current status. Look up your ITC (HS) code in Schedule-II (Export Policy) of ITC (HS) 2022 on the DGFT portal. The entry will show whether the item is Free, Restricted, Prohibited, or Free-subject-to-MEP.

2. Read the exact notification. If an MEP applies, find the governing DGFT notification. Confirm three things: the price, the unit and basis (almost always FOB), and the validity date.

3. Price your shipment at or above the floor. Your FOB export price must meet or exceed the MEP. Build your quotation so the declared FOB value on the shipping bill is compliant.

4. Declare consistently. The value on your commercial invoice and shipping bill must reflect a price at or above the MEP. Undervaluation to win a price-sensitive order is a compliance failure, not a workaround.

5. Re-check before long-dated contracts. Because MEP conditions carry expiry dates and get revised, verify the current position close to shipment — not just at the time you signed the order.

Non-compliance has teeth. Attempting to export below the MEP can lead to rejection of the consignment at customs and regulatory action. The floor is enforced at the shipping-bill stage, so there is no shipping first and fixing it later.

Frequently Asked Questions

What is the current MEP on natural honey? USD 1,400 per metric tonne (FOB) for natural honey under ITC (HS) 04090000, extended to 31 December 2026 by DGFT Notification No. 09/2026-27 dated 10 April 2026.

Does an MEP mean I cannot export the product at all? No. The product stays exportable — you just cannot ship it below the minimum price. MEP is a price floor, not a ban.

Is MEP the same as an export duty? No. An export duty is a tax you pay the government. MEP costs you nothing directly; it only restricts how low you can price.

How do I know if my product has an MEP? Check your ITC (HS) code in Schedule-II (Export Policy) on the DGFT portal, then read the governing notification for the price and validity date.

Can an MEP be removed? Yes, and often is. Onion, basmati and non-basmati rice floors have all been removed after being imposed. Always confirm the current status before shipping.

What is the difference between MEP and MIP? MEP is a floor on exports (you cannot export below it); MIP is a floor on imports (goods cannot be imported below it, to block cheap dumping). They are separate instruments.

What happens if I export below the MEP? Your consignment can be rejected at customs and you may face regulatory action. The condition is checked at the shipping-bill stage.

The Bottom Line

The current headline is straightforward: natural honey now carries a USD 1,400/MT FOB floor until 31 December 2026. The wider lesson is more useful — MEP conditions are among the most frequently changed lines in India's export policy, imposed and lifted in response to domestic prices and market conditions, often on short timelines.

If you export any listed commodity, build one habit: before you finalise price and ship, check your HS code's current export-policy status and read the governing notification for the price and its expiry. It takes minutes and prevents a held consignment.

This article reflects the position as of July 2026 and is general information, not advice. MEP conditions are revised frequently — verify the current notification for your product on the DGFT portal at dgft.gov.in before pricing or shipping.