Centre lifts ban on onion exports from January 1 as wholesale prices plunge
In September, the government had banned export of onions to bridge the demand and supply gap in the domestic market.
The Centre has decided to lift all restrictions on export of onions from January 1, 2021, the commerce and industry ministry said on Monday. The decision came on the back of arrival of the new crop in the markets, which is expected to lower onion prices, according to Mint.
Wholesale prices of onions have more than halved in the last four weeks, Reuters reported quoting data compiled by government agency National Horticultural Research and Development Foundation.
In September, the government had banned export of all varieties of onions to bridge the demand and supply gap of the vegetable in the domestic market. The ban came after the government anticipated a shortfall of the vegetable as exports shot up 30% in the April-July period, Mint reported.
India is the world’s biggest exporter of onions, a staple of South Asian cooking. The country exported onions worth $198 million between April and June in the financial year of 2020-’21 and $440 million in 2019-’20. Bangladesh, Malaysia, United Arab Emirates and Sri Lanka are the top importers of Indian onions.
