In an effort to manage supply and costs, the center banned onion exports until March 2024

The Center on Friday prohibited onion exports until March of the next year, ahead of the Lok Sabha election in 2024. The action has been taken in an effort to control prices and boost domestic availability.

Through March 31, 2024, the export policy of onions would be forbidden, as per the notification issued by the Directorate General of Foreign Trade (DGFT).

On special requests, permission will be granted for exports

However, the DGFT added, exports of onions will only be permitted if the government grants permission to foreign nations upon their request.

It further stated that exports of onion shipment whose loading had started prior to this notice are permitted.

Additionally, exports are permitted for shipments where a shipping bill has been filed, the vessel has previously stopped and placed in Indian ports for the purpose of loading onions, and its rotation number has been assigned prior to this announcement.

In what circumstances is it permissible to export onions?

Onion exports are also allowed if the shipments were turned over to customs prior to this notification and are recorded in their system, or if the shipments arrived at the customs station ready for exportation prior to this notification and were recorded in the electronic systems of the relevant customs station custodian with substantiated proof of the date and time these goods were stamped upon arrival at the station before December 8.

Such consignments may be exported up to January 5 of the following year. Onions are being sold by local traders in New Delhi for between Rs. 70 and Rs. 80 per kg.

In an effort to help customers, the Center had earlier in October agreed to increase the sale of buffer onion stock in retail markets at a subsidized rate of Rs.25 per kg.

Minimum price of $800 tonne set for Onion exports

The government has previously taken a number of actions to control pricing. From October 28 to December 31 of this year, it set a minimum export price (MEP) of $800 per tonne for onion exports.

India levied a 40% export tax on onions in August, with the tariff expiring on December 31.

In this fiscal year, India exported 9.75 lakh tonnes of onions between April 1 and August 4. Bangladesh, Malaysia, and the UAE are the top three countries in terms of value when it comes to onion imports.

Amidst concerns of a delay in onion coverage during the current kharif season, onion prices have begun to slowly increase.

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The WPI data, which was made public on November 14, shows that although the inflation rates for potatoes and vegetables decreased to (-) 29.27% and (-) 21.04%, respectively, the annual rate of price increase for onions remained high at 62.60% in October.

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