The Directorate General of Foreign Trade (DGFT) has extended the Minimum Export Price (MEP) for honey at $1,400 per tonne until December 31, 2026. This policy aims to ensure Indian honey remains competitive against cheaper global alternatives. However, the measure highlights a persistent gap where export prices are protected, while beekeepers continue to face declining procurement rates in key producing regions.
The Directorate General of Foreign Trade (DGFT) has officially extended the minimum export price (MEP) for natural honey. Under notification No. 09/2026-27, exporters must ensure that every tonne of honey shipped out of India is valued at no less than $1,400 until December 31, 2026. This policy acts as a mandatory floor price, intended to prevent Indian companies from selling honey at extremely low rates, which helps the country maintain its standing in competitive international markets.
Export Protection vs. Farm Income
While this rule provides stability for exporters, it does not guarantee higher earnings for those at the beginning of the supply chain—the beekeepers. The MEP mechanism primarily protects the commercial value of shipments heading to major markets like the United States, which imports a significant portion of Indian honey. Because this floor price only applies to the final export transaction, it does not legally require processors or traders to pass these protected revenues back to the farmers who harvest the honey.
This has created a growing divide. While export volumes remain resilient, the prices paid to beekeepers have faced downward pressure. In key producing states like Punjab, for instance, procurement rates offered to farmers have dropped significantly over the past two years. This creates a difficult economic environment for producers, who see their share of the final value shrink even as the government maintains a floor price to keep the export sector globally relevant.
Market Concentration and Future Risks
The Indian honey export sector remains highly dependent on demand from the US, which accounts for approximately 76% of total shipments. This heavy reliance makes the industry vulnerable to potential shifts in US trade policies or changes in global buyer preferences. Additionally, the lack of transparency in how export profits are distributed remains a structural concern.
Without policies that specifically bridge the gap between export value and farm-gate prices—such as state-level support schemes like Haryana's Bhavantar Bharpai—the current MEP structure may continue to benefit commercial exporters while offering little financial cushion to beekeepers. Going forward, the most important development to monitor will be whether more states introduce direct procurement support schemes to protect producer margins, or if the government adjusts the policy to improve price transmission within the domestic supply chain.