The Indian government has extended the ban on onion exports indefinitely to enhance domestic availability and control prices. Initially set to expire on March 31, 2024, the Directorate General of Foreign Trade (DGFT) announced the continuation of the export prohibition until further notice. The ban was first implemented in December of the previous year, with certain exceptions allowing exports to friendly nations based on individual approvals from an inter-ministerial group. Consequently, exports of 64,400 tonnes of onions were sanctioned to the UAE and Bangladesh through the National Cooperative Exports Ltd (NCEL).
To alleviate the impact on consumers, the government had previously initiated measures such as releasing buffer stocks of onions at reduced prices of Rs 25 per kg in retail markets. This action was part of a broader strategy to moderate onion prices, which included setting a minimum export price (MEP) of USD 800 per tonne from October 28 to December 31, 2023, and imposing a 40% export duty on onions until the end of 2023. These steps reflect the government's proactive approach to managing the supply and pricing of onions, a commodity of significant political and economic importance in India.
The ongoing export ban and other regulatory measures underscore the government's commitment to ensuring onion availability and affordability in the domestic market. By extending the export ban and maintaining control over onion distribution, the government aims to prevent price surges and secure a stable supply for Indian consumers, reflecting the importance of onions in the country's culinary and economic landscape.