Following the early month cessation of the export prohibition, India has dispatched over 45,000 tons of onions, primarily to the Middle East and Bangladesh. This move comes after the imposition of export restrictions aimed at stabilizing domestic availability in anticipation of the general elections. The initial ban, instated last December and subsequently extended in March, was a response to escalating prices due to reduced production rates. Nidhi Khare, Secretary of the Consumer Affairs Ministry, communicated to PTI, "Since the ban was lifted, more than 45,000 tons of onions have been exported, mostly to the Middle East and Bangladesh." The government, to moderate onion prices during the electoral period, rescinded the ban on May 4, concurrently instituting a minimum export price of USD 550 per ton.
Additionally, the anticipation of a favorable monsoon forecasts an optimistic sowing season for kharif crops, including onions, starting June. Concurrently, state entities have commenced the procurement of onions from the recent rabi harvest, aiming to amass a buffer stock of 500,000 tons for this year. Despite these efforts, the Agriculture Ministry's preliminary estimates indicate a 16% decrease in onion production to 25.5 million tons for the 2023-24 crop year, attributed to diminished yields in principal cultivation areas such as Maharashtra, Karnataka, and Andhra Pradesh.
Source: deccanchronicle.com