Centre extends onion export ban till March 31: Here's why
The Indian government has extended the onion export ban until March 31, 2024, to ensure domestic availability and stabilize prices. Consumer Affairs Secretary Rohit Kumar Singh confirmed the decision, which follows a Directorate General of Foreign Trade notification from December 8, 2023. Last October, the Centre increased the sale of buffer stock at a subsidized rate of Rs. 25 per kilogram in the retail market to help consumers when onion prices shot up.
Centre's efforts to provide relief to consumers
Initially imposed in August 2023, the export ban was set to last until December 31, 2023. However, after rumors of the ban being lifted, wholesale onion prices skyrocketed by 40.62% to Rs. 1,800 per quintal on Monday (February 19) in Maharashtra's Lasalgaon, India's largest wholesale onion market. The ban is expected to continue even after March 31 due to upcoming general elections and a predicted decrease in onion production during the winter season.
Lower onion production expected
Moneycontrol reported that reduced acreage in Maharashtra will lead to lower rabi production. In the 2023 rabi (winter) season, onion production was estimated at 22.7 million tons. The Agriculture Ministry's officials will soon assess rabi onion coverage in key growing states like Maharashtra, Madhya Pradesh, and Gujarat. Meanwhile, onion exports to friendly countries are allowed on a case-to-case basis after approval from an inter-ministerial group.
