India Prohibits Onion Exports Till March 2024

New Delhi: In a move to regulate onion prices and ensure domestic supply, India has officially prohibited the export of onions until March 2024, according to a recent official notification issued on Thursday evening.

Directorate General Of Foreign Trade's Notification

The Directorate General of Foreign Trade (DGFT) notification clarified that while the export of onions is restricted, exceptions will be considered based on specific permissions granted by the central government to other countries. Such permissions will be granted in response to requests made by these countries. (Also Read: DOMS Industries IPO: Check Price Band, Issue Size, Allotment Date, Listing Date, And More)

Current Onion Prices

As of now, onions are being sold at approximately Rs 60 per kilogram in retail markets. The government had earlier taken measures in August, imposing a 40 percent duty on onion exports until December 31, 2023. (Also Read: Highest Paid Indian CEOs And Their Educational Qualification - Check)

Additionally, a Minimum Export Price (MEP) of USD 800 per tonne, on a free-on-board basis, was set by the central government starting from October 29.

Notably, the export duty did not apply to 'Bangalore rose onion,' a specific variety grown in and around Bengaluru, Karnataka. This exemption, however, comes with a condition -- exporters must furnish a certificate from the Horticulture Commissioner, Government of Karnataka, certifying the item and quantity of Bangalore Rose Onion to be exported.

Buffer Stock And Government Initiatives

Facing the challenge of rising onion prices, the central government has been releasing onions from its buffer stock. In the current season (2023-24), the government has planned to maintain a buffer stock of 3 lakh tonnes, up from 2.51 lakh tonnes in the previous season (2022-23). Buffer stocks serve as a strategic reserve to address emergencies and stabilize prices during periods of low supply.

Understanding India's Onion Production Cycle

Highlighting the significance of the Rabi onion harvest from April to June, the article notes that it constitutes 65 percent of India's onion production. This harvest plays a crucial role in meeting consumer demand until the Kharif crop is harvested in October-November.