Following the Ministry of External Affairs' advisement, India has sanctioned the export of onions on a government-to-government (G2G) basis to specific countries, albeit in restricted quantities. The identities of the recipient nations have been disclosed, including Bangladesh, Sri Lanka, Mauritius, Bahrain, Bhutan, and Nepal. Despite this partial alleviation, the comprehensive ban on onion exports remains, with the exporting agency yet to be announced.
India, recognized as the globe's second-largest onion exporter, had enforced a prohibition on onion exports from December 2023 to March 2024, aiming to mitigate domestic price inflation and avert shortages. This export ban catalyzed a surge in onion prices across neighboring nations. In response to escalating prices in August 2023, the finance ministry introduced a 40% export duty, which was followed by setting a minimum export price at $800 per tonne from October 28, due to persistent under-invoicing issues.
The export ban's imposition was a reaction to severe weather conditions damaging crops in key areas, leading to a significant reduction in onion supply during the peak season and subsequent price hikes. This decision precipitated a drastic price drop in the wholesale markets, inciting prolonged protests from onion farmers in Maharashtra, India's primary onion-producing region, who demanded the ban's revocation.
Maharashtra farmers welcome central govt decision
The export ban's lift, heralded by a committee led by Union Home Minister Amit Shah, has been met with optimism from Maharashtra farmers, anticipating favorable international market rates.
Source: timesnownews.com