Indian Bans Onion Exports Until March 2024 to Stabilize Domestic Prices

New Delhi: In a move aimed at stabilizing domestic onion prices, the Indian government has prohibited onion exports until March 31, 2024. The Directorate General of Foreign Trade (DGFT) announced the amendment, shifting the export policy from free to prohibited.

This decision follows previous measures, including the imposition of a minimum export price (MEP) of USD 800 per tonne until December 31 and a 40% export duty on onions until the same date.

Local vendors in the national capital are currently selling onions at prices ranging from Rs 70 to Rs 80 per kg. To provide relief to consumers, the government had earlier decided to increase the sale of buffer onion stock at a subsidized rate of Rs 25 per kg in retail markets.

It is noteworthy that onion exports will still be permitted on a case-by-case basis, with the government granting permission based on requests from other countries.

Shipments of onions that commenced loading before this notification are exempted from the export prohibition.

These measures are part of the government’s ongoing efforts to address fluctuations in onion prices and ensure ample domestic availability.