News By/Courtesy: Gopika Sasi | 17 Sep 2020 12:02pm IST

HIGHLIGHTS

  • The Union government on Monday banned the export of all varieties of onions
  • India is the world's biggest exporter of onions
  • Sri Lanka, Malaysia, Bangladesh, and UAE are the top importers of Indian onions

As exports surged, The Union government on Monday banned the export of all varieties of onions, anticipating a supply crunch in the coming weeks. Export of onions rose in the April-July period causing prices to show signs of firming up. India is the world's biggest exporter of onions, which is a staple of South Asian cooking. Countries such as Sri Lanka, Nepal, Malaysia, and Bangladesh rely on Indian shipments.

 

The Directorate General of Foreign Trade said in a notification that the export of all varieties of onions is prohibited with immediate effect. In addition to this, the notification also stated that of all varieties of onions are prohibited with immediate effect.

 

As onion one of the major ingredients of the Indian food platter, the rise in prices affects almost all the sections of the society. During June-August, onion price was around Rs 20-22 per kg but it dramatically rose to Rs 30 per kg on September 10. The ban includes Krishnapuram onions and Bangalore rose onions. These varieties were free of export till now. 

 

In the April-June period of FY21, India exported $198 million of onions and $440 million in the entire 2019-20. Sri Lanka, Malaysia, Bangladesh, and UAE are the top importers of Indian onions. 

 

 It seems like two main triggers prompted the government to take the extreme step of putting a blanket ban on exports of all kinds of onions. The first is definitely because of the steady increase in wholesale prices of onions becoming costlier in the urban markets. The immediate trigger which led to the ban can also be found in the Consumer Price Index numbers released by the Ministry of Statistics and Program Implementation on Monday.

 

The reason that onions were costlier in the wholesale markets was because of exceptionally heavy rains that lashed the country in August. The heavy rain almost completely washed out the market ready onion crops in Karnataka. The traders feel the prices are again going to rise in a week or so as the overall supplies will remain stressed.

 

 
This article does not intend to hurt the sentiments of any individual, community, sect, or religion, etcetera. This article is based purely on the author’s personal opinion and views in the exercise of the Fundamental Rights guaranteed under Article 19(1)(A) and other related laws being enforced in India for the time being.

 

Section Editor: Pushpit Singh | 18 Sep 2020 10:02am IST


Tags : Onion export ban, exporter, India

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