India prohibits onion exports till March 2024

India has declared that exporting onions would be prohibited till March 2024, according to a formal announcement made late on Thursday night. However, the export of onions will be permitted under the authorization that the central government grants to foreign nations upon their request, according to the DGFT announcement.

Currently, onions cost around Rs 60 per kilogram in Indian retail marketplaces. To curb the increase in princess and increase supply in the local market until the end of the year, the government levied a 40% levy on onion exports in August.
Following that, on October 29, the federal government established a Minimum Export Price (MEP) for onion exports of USD 800 per tonne on a free-on-board basis.

However, there was a small catch: goods intended for export were only permitted if the exporter provided a certificate from the Horticulture Commissioner, Government of Karnataka, verifying the type and quantity of Bangalore Rose Onion to be exported. This was the central government’s exemption from the export duty on the export of “Bangalore rose onion.”

Bengaluru, Karnataka is home to the Bangalore rose onion type of onions. In 2015, it was awarded the coveted Geographical Indication badge.

The federal government has begun releasing onions from its buffer stock in response to rising onion prices. Before this, the national government had agreed to keep 3 lakh tons of onions on hand for the 2023–2024 growing season as a safety net. The government had 2.51 lakh tons of onions on hand as a buffer stock in 2022–2023.

To handle unforeseen circumstances and stabilize prices if rates rise sharply during the season of limited supply, buffer stock is kept on hand.

Sixty-five percent of India’s onion output comes from the Rabi crop, which is harvested in April and June. This crop sustains consumer demand until the Kharif crop is harvested in October and November.