In a bid to boost domestic availability and control prices, the Indian government has imposed a ban on onion exports until March 31, 2024. The Directorate General of Foreign Trade (DGFT) announced the amendment of the export policy for onions, changing it from free to prohibited.
Local vendors in the national capital are currently selling onions at Rs 70-Rs 80 per kg. The government’s earlier measures to address rising onion prices included selling buffer onion stock at a subsidized rate of Rs 25 per kg in retail markets.
To further control prices, the government had previously imposed a minimum export price (MEP) of USD 800 per tonne on onion exports until December 31. Additionally, a 40 per cent export duty on onions was in place until December 31.
The DGFT clarified that while the general export of onions is prohibited, exceptions will be made based on government-granted permissions to specific countries. Shipments that were in progress before the notification are allowed to be exported. The period of export for such consignments extends up to January 5 next year.
Between April 1 and August 4 of this fiscal year, India exported 9.75 lakh tonnes of onions, with Bangladesh, Malaysia, and the UAE being the top three importing countries in value terms.
Onion prices have been on the rise, coupled with concerns about a delay in onion coverage during the ongoing kharif season. According to November 14 WPI data, the annual rate of price rise in onions remained high at 62.60 per cent.
