The government has decided to continue the export ban on onions to enhance domestic availability and stabilize its prices. Previously, this ban was set to expire on March 31 of this year.
The Directorate General of Foreign Trade (DGFT) announced in a notification dated March 22 that the export ban on onions, which was originally set to expire on March 31, 2024, has been extended until further notice.
The DGFT is a branch of the ministry responsible for handling issues related to exports and imports.
The government imposed a ban on the export of onions on December 8, 2023.
Continue Exploring: Onion export ban set to continue until March 31, no immediate changes expected
Onion output was projected to be 22.7 million tonnes for the 2023 rabi season.
The export of onions to friendly nations is allowed on a case-by-case basis, contingent upon approval from the inter-ministerial group.
The government has authorized the export of 64,400 tonnes of onions to the UAE and Bangladesh via the National Cooperative Exports Ltd (NCEL).
In order to provide relief to consumers, the Centre had previously decided in October 2023 to increase the sale of buffer onion stock at a subsidised rate of INR 25 per kg in retail markets.
The government had previously put in place a number of measures to control prices. For onion exports between October 28 and December 31, 2023, a minimum export price (MEP) of USD 800 per tonne was established.
In August, India introduced a 40% export duty on onions effective until December 31, 2023.
Onions are a politically sensitive commodity.
Continue Exploring: India’s onion export ban triggers soaring vegetable prices across Asia
