Onions : India lifts export ban

In December 2023, the Indian central government decided to ban onion exports until 31 March 2024, and then extended the ban indefinitely.

 

The local media have announced that this ban has been lifted. A notification from the DGFT (Directorate General of Foreign Trade) has indicated that the export of onions is no longer prohibited. Subject to a MEP (Minimum Export Price) of USD 550 per tonne and an export duty of 40%.

 

These decisions are the result of consultations with stakeholders and various assessments of supply, harvests and prices. Production during the 'rabi' season and the outlook for 'kharif' production are estimated to be very satisfactory for meeting domestic market demand (1.7 million tonnes per month) and for foreign sales.

 

Some analysts see politics as the reason for this decision, which comes in the midst of voting for national elections, with Prime Minister Narendra Modi seeking a 3rd term. These elections are spread over 7 weeks and some parts of the country, including the onion-growing states, have not yet voted.

 

In the year ending 31 March 2023, India exported 2.5 million tonnes of onions.