A senior official stated on Tuesday that the government will uphold the ban on onion exports until its originally set deadline of March 31. This decision is driven by the government’s commitment to stabilizing prices and ensuring an ample domestic supply. The export of onions was initially prohibited on December 8, 2023, with the deadline set for March 31.
“Ban on onion exports has not been lifted. It is in force and there is no change in the status,” Consumer Affairs Secretary Rohit Kumar Singh told.
Continue Exploring: India halts onion exports as prices soar due to unseasonal rainfall
He further emphasized that the government’s utmost priority is to guarantee sufficient domestic availability of onions at affordable prices for consumers.
Following reports of the export ban being lifted on the commodity, wholesale onion prices surged by 40.62% to INR 1,800 per quintal on February 19 in Lasalgaon, the nation’s largest wholesale onion market, compared to INR 1,280 per quintal on February 17.
Sources indicate that the ban is unlikely to be lifted even after March 31, especially with the general elections looming ahead. This is due to projections of lower rabi (winter) onion production, attributed to reduced coverage of cultivation areas, particularly in Maharashtra.
Continue Exploring: Onion prices plunge by 50% following govt ban on exports
During the 2023 rabi season, onion production was estimated to reach 22.7 million tonnes.
The Agriculture Ministry officials will assess the rabi onion coverage in key growing states of Maharsthra, Madhya Pradesh and Gujarat in the coming days.
Meanwhile, the export of onion to friendly countries is allowed on a case-to-case basis after approval from the inter-ministerial group.
Continue Exploring: India eases onion export restrictions, allows shipments to selected countries