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India 08/07/2021

9% drop in revenues from exported Indian onions

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In India, the ban on exporting onions for 4 months and the drop in demand due to the COVID-19 pandemic, caused a drop in revenue from exported onions. The 2020-21 financial year recorded a drop in value of 9% and the lowest level reached in 6 years.
Since the 2016-17 fiscal year, export revenues from Indian onions have been declining. The 2020-21 financial year recorded a drop in value of 9% compared to the previous financial year and the lowest level reached in 6 years.
According to industry professionals, government decisions to ban onion exports whenever domestic prices rise are one of the reasons for the decline. An association of traders specifies that over the past 2 years, the government has banned exports for 4 to 6 months, then again from September 2020 to January 2021.
These export stoppages push foreign buyers to seek other suppliers and regaining market share will be difficult. Thus the main export market for Indian onion, Bangladesh, has imported Pakistani onions on a massive scale. Buyers from various Asian markets also source their supplies from China, Turkey and Egypt.
These shutdowns and resumptions of Indian exports are considered inconsistent policies by industry professionals. According to them, the country needs a stable and long-term policy allowing a reliable supply and the re-establishment of Indian onions on international markets.
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In India the government banned onion exports for several months. These stops and resumes are deemed inconsistent policies by Indian professionals (Photo: .
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