Government To Continue The Ban On Onion Exports Till March 31, 2024

Consumer Affairs Secretary, Rohit Kumar Singh said that the govt plans to honour the previously announced deadline in an attempt to keep a check on prices and ensure unhindered domestic supply

The government intends to continue the restrictions placed on onion exports till the deadline of March 31, 2024, Consumer Affairs Secretary, Rohit Kumar Singh said on Tuesday. The official said that the government plans to honour the previously announced deadline in an attempt to keep a check on prices and make sure that domestic supply remains unhindered.

Earlier in December 2023, the government placed a ban on exporting onions till the end of the current fiscal year (2023-24). The secretary told PTI that the ban remains in place and there ‘is no change in the status’. He added that the government is currently prioritising domestic availability of onion at economical prices.

The modal wholesale onion prices climbed 40.62 per cent to touch Rs 1,800 per quintal on Monday in Lasalgaon, after reports of a possible removal of the export ban started floating around. Last week on February 17, the wholesale prices of the produce stood at Rs 1,280 per quintal. Lasalgaon represents the largest wholesale onion market in the country. 

The report cited sources and said that the export ban seems unlikely to be removed even after the March 31 deadline as rabi onion production is anticipated to be lower due to reduced area coverage, especially in major producing states like Maharashtra. Notably, the onion production was estimated at 22.7 million tonne in the 2023 rabi season.

Officials from the Agriculture Ministry are soon expected to evaluate the onion coverage in the rabi season in major onion-producing states like Maharashtra, Madhya Pradesh, and Gujarat. However, the export of the produce to friendly nations is permitted on a case-to-case basis after getting proper approval from the inter-ministerial group.

Notably, earlier in October 2023, the government decided to increase the sale of buffer onion stock at the subsidised rate of Rs 25 per kg in retail markets to help provide some relief to the customers. Initially, in August 2023, the authorities placed a ban on onion exports till December 31, 2023, which was later extended to March end.