India bans onion exports until March 2024

However, export will be allowed in cases where the Indian government approves requests from its counterpart in other countries

The Indian government has banned the exports of onion until March next year to increase its availability in the domestic market and rein in the prices, NDTV reports.

The Directorate General of Foreign Trade, or DGFT, said the overseas sale of onion, however, would be allowed on the basis of permission granted by the government to other countries based on their request.

The order took effect from Friday after it was issued on Thursday. The DGFT added that shipments of onion, whose loading had commenced before this notification, are allowed to be exported, the NDTV report added.

Further, in cases where the shipping bill was filed and vessels already berthed and anchored in Indian ports for loading of onions and their rotation number has been allocated earlier, those shipments would also be to complete their tasks.

Onion export were also permitted if "consignments of onion has been handed over to the customs before this notification and is registered in their system where onions consignment has entered the customs station for exportation before this notification and is registered in the electronic systems of the concerned custodian of the customs station with verifiable evidence of date and time stamping of these commodities having entered the station prior to Dec 8”, according to the order.

The period of exports for such consignments shall be up to Jan 5 next year.

The Indian market is experiencing a crisis in onions supply after the harvest this season was poor due to inclement weather. In August, India had imposed a 40 percent export duty on onions up to Dec 31.

To control prices, the government has earlier taken several steps. It had imposed a minimum export price (MEP) of USD 800 per tonne on onion exports on Oct 28 until Dec 31 this year.

Indian vendors in the national capital are selling onions at 70-80 rupees per kg, the NDTV added. In Bangladesh, locally-grown onions were being sold at Tk 120 per kg while those imported from India cost Tk 100 per kg.

Bangladesh prevents onions import for most of the year in a bid to secure the trade of local farmers. But when prices increase towards the end of a season, the government opens the import windows.

Earlier this year, onion prices leapt from Tk 35 to Tk 80 per kg, prompting the Ministry of Agriculture to open up opportunities to import onions from its neighbour.