India Has Banned Onion Exports: Before the Lok Sabha elections, the Government of India has taken a big decision. India has extended the ban on onion exports indefinitely. Due to this step of India, onion prices may increase further in some foreign markets. This ban was to end on March 31.
This is what traders expected
Traders were hopeful it would be lifted as local prices have more than halved since the export ban was imposed and new supplies are coming in from this season’s crop. However, the government issued an order late on Friday night that the ban will remain in effect until further notice.
According to a Reuters report, an official at a Mumbai-based export firm, speaking on condition of anonymity, said, given falling prices coupled with increased supplies from the new season crop, this extension is surprising and completely unnecessary. The official said onion prices in some wholesale markets in Maharashtra, the largest onion producing state, have fallen to Rs 1,200 ($14) per 100 kg from Rs 4,500 in December.
These countries are dependent on India for onion
It is noteworthy that countries like Bangladesh, Malaysia, Nepal and UAE are dependent on imports from India to meet the shortfall in domestic supply of onion and many of them are struggling with high prices after the ban. India, which has shorter shipment times in many markets than rivals such as China or Egypt, accounts for more than half of total onion imports by Asian countries, traders estimate.
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