India Prolongs Onion Export Ban Indefinitely Government Extends Restrictions to Stabilize Domestic Prices and Supply

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India Enforces Indefinite Extension on Onion Export Ban

In a significant move to stabilize domestic markets, the Indian government has indefinitely extended the ban on onion exports, a decision that impacts global supply chains. Initially set to expire on March 31, authorities will now extend the ban until they issue further notification. They aim to ensure a stable domestic supply and control the soaring onion prices within the country with this extension.

Background and Impact on Global Markets

The Directorate General of Foreign Trade (DGFT) released a statement confirming the extension: “The prohibition on onion exports, previously valid until March 31, 2024, will now remain in effect until further orders are issued.” The fiscal year data leading up to January highlighted substantial onion exports worth $431.78 million. Significant quantities shipped to Bangladesh and Sri Lanka, totaling $187,5 million and $48,12 million respectively.

Recent Government Interventions and International Trade

Amidst global demand, India had temporarily relaxed the export ban earlier, allowing specific quantities to be shipped to Bangladesh and the UAE, countries heavily reliant on Indian onions. These moves were part of broader efforts to manage domestic prices while maintaining diplomatic trade relations.

Measures to Curb Domestic Price Inflation

To combat inflation and enhance domestic availability, the Indian government had previously implemented several measures, including setting a minimum export price of $800 per tonne and imposing a 40% export duty on onions. These regulations, effective until the end of 2023. These were strategically placed to keep the onion prices in check and ensure an adequate supply for the Indian populace.

In conclusion, the indefinite extension of the onion export ban by India marks a strategic step towards securing the domestic availability of this essential commodity while balancing international trade obligations. The government remains committed to monitoring the situation closely and adjusting policies as necessary to maintain market stability.