The Indian government has implemented a ban on onion exports until March 31, 2024, aiming to bolster domestic availability and regulate prices within the country. The Directorate General of Foreign Trade (DGFT) announced this decision, altering the export policy of onions from “free” to “prohibited.”
Amidst this directive, local vendors in the national capital are vending onions at prices ranging between Rs 70 to Rs 80 per kilogram. Earlier interventions included the Centre’s initiative in October to augment the sale of buffer onion stock at a subsidized rate of Rs 25 per kilogram in retail markets to alleviate consumer burden.
Previously, the government had undertaken multiple measures to control onion prices, including the imposition of a minimum export price (MEP) of USD 800 per tonne on onion exports from October 28 to December 31. Moreover, a 40 percent export duty on onions was instituted until December 31, decided back in August.
The DGFT clarified that despite the export ban, shipments of onions ongoing before the notification are permitted for exportation. This includes consignments that have been handed over to customs or have entered customs stations for exportation before December 8, with specified allowances extended until January 5 next year.
Between April 1 and August 4 of this fiscal year, the country exported 9.75 lakh tonnes of onions, with Bangladesh, Malaysia, and the UAE ranking as the top three importers based on value.
Recent reports of lagging onion yields during the ongoing kharif season have led to an increase in onion prices. Recognized as a politically sensitive commodity, onions continue to hold significant economic and political implications.
The embargo on onion exports until March 2024 is part of the government’s concerted efforts to stabilize domestic prices, ensuring sufficient onion availability in the local market and alleviating concerns over price volatility in the coming months.
Sources By Agencies