India Bans Onion Exports Till March 2024 To Keep Prices In Check

Earlier in October, the government decided to increase the sale of buffer onion stock at a subsidised price of Rs 25 per kg in retail markets to help the customers.

Notably, India exported 9.75 lakh tonnes of onions between April 1 and August 4 in the current fiscal year. ( Image Source :Getty )

The Indian government banned the export of onions till March next year to help boost the domestic supply and to keep a check on prices. The Directorate General of Foreign Trade (DGFT) issued a notification stating, “Export policy of onions... is amended from free to prohibited till March 31, 2024.”

Notably, vendors in the national capital region have been selling onions for around Rs 70-80 per kg. Earlier in October, the government decided to increase the sale of buffer onion stock at a subsidised price of Rs 25 per kg in retail markets to help the customers. Further, the government took a multitude of measures to keep a tab on prices, reported PTI. 

On October 28, the government imposed a minimum export price (MEP) of $800 per tonne on onion exports till December 31, 2023. Prior, in August, India levied a 40 per cent export duty on onions till December 31. 

At the same time, the DGFT said that onion exports will be allowed on the basis of permission granted by the government to other nations as per their requests. It noted that onion shipments, where loading had already begun before the notification, would be allowed to be exported. Additionally, shipment for exports would also be allowed where a shipping bill has been filed, vessels have already berthed and anchored in Indian ports for loading the produce and the rotation number of the vessels has been allocated, all before the notification.

The government permitted onion experts in cases where the produce consignments were handed over to the customs before the notification and were already registered in the system or where onion consignments entered the customs station and were registered in the electronic systems of the concerned custodian at the station with complete evidence of date and time stamps of the commodities entering the station, before December 8. These exports would be provided a final period up to January 5, 2024.

Notably, India exported 9.75 lakh tonnes of onions between April 1 and August 4 in the current fiscal year. Based on value terms, the top three importing nations included Bangladesh, Malaysia, and the UAE. 

Onion prices have been surging due to reports of lower onion coverage in the ongoing Kharif season. According to data released by the WPI on November 14, inflation in vegetables and potatoes lowered to -21.04 per cent and -29.27 per cent respectively, however, the annual rate of inflation in onions remained at the higher end at 62.60 per cent in October.