India bans onion exports till March next amid rising prices
New Delhi, December 8: In response to escalating onion prices and to maintain stability in the domestic market, the Central Government has issued a ban on onion exports until March 2024, as announced in a recent notification by the Director General of Foreign Trade (DGFT).
The notification, released late on Thursday evening, highlighted the prohibition on onion exports, emphasising that any further exports would be permitted solely upon the Central Government's approval based on requests made by other nations.
Earlier, the government had implemented a series of measures to curb onion prices. In August, a 40 percent duty was imposed on onion exports to regulate prices and ensure adequate supply in the domestic market, effective until December 31, 2023.
Additionally, a Minimum Export Price (MEP) of USD 800 per tonne was set for onion exports from October 29 onwards. However, the export of 'Bangalore rose onion' remained exempt from export duties, provided the exporter furnished a certificate from the Horticulture Commissioner of Karnataka, certifying the item and quantity for export. This specific variety of onion received the prestigious Geographical Indication tag in 2015 and is grown in and around Bengaluru.
Recognising the importance of buffer stock to meet market demands and stabilise prices, the government planned to maintain 3 lakh tonne of onions as buffer stock for the 2023-24 season, compared to 2.51 lakh tonne in the previous year.
The ban on exports comes at a crucial time as Rabi onion harvests, from April to June, account for 65 percent of India's onion production and bridge the gap until the Kharif crop is harvested in October-November.
It is being seen as as strategic move to combat inflation, particularly in the run-up to the 2024 Lok Sabha Elections.
Further, the government has also instructed sugar mills and distilleries not to utilise sugar cane juice or sugar syrup for ethanol production in the ethanol supply year of 2023-24 (November-December), emphasising a shift in priorities amidst evolving market demands.
The all-India average price of onions stood at Rs 57.11 per kg on Thursday, marking a significant increase of 97.95 percent compared to prices from a year ago, reflecting the severity of the situation addressed by these measures.
- With inputs from agencies
