New Delhi: India has revoked the ban on onion exports, as confirmed by an official notification released on Saturday, just a day after the government announced a 40% export duty. This decision comes after the country, known as the world’s largest exporter of onions, imposed the export ban last December, extending it further in March.
The timing of these policy changes coincides with the ongoing staggered voting in India’s national election, where Prime Minister Narendra Modi is vying for a rare third term. Notably, parts of Maharashtra, a significant onion-producing region in western India, are yet to cast their votes.
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Alongside lifting the export ban, the government has also introduced a minimum export price of $550 per metric ton for onion exports. A government official elaborated on the rationale behind this decision, stating, “This is after taking into account estimated rabi production 2024 and good kharif (summer-sown) prospects due to above-normal monsoon.”
Onions, a crucial ingredient in Indian cuisine and a politically sensitive commodity, are cultivated three times a year – during the monsoon, winter, and summer seasons. With an estimated onion production of 19.1 million tons during the rabi season in 2024, the government deems it “comfortable” to permit overseas sales, considering that local monthly consumption stands at about 1.7 million tons.
Traders estimate that India, with its shorter shipment times compared to competitors like China or Egypt, accounts for over half of all onion imports by Asian countries. In the year ending March 31, 2023, India achieved a record onion export of 2.5 million metric tons.
