Frequent bans on onion exports from India draws ire from farmers, Japan and the US

Published 2021년 7월 14일

Tridge summary

The US and Japan have expressed concerns to the World Trade Organization (WTO) about India's frequent bans on onion exports, which they argue are not properly notified in advance. They have also asked India to explain its refusal to implement an export quota. These concerns have been echoed by onion growers in Maharashtra, who are calling for a more comprehensive import and export policy. The recent history of onion trade includes a ban last year, which was partially lifted in October 2020, a significant decline in export revenue during the 2020-21 fiscal year due to a ban and reduced demand, but a recovery in sales volume with a 14% growth. India's onion exports reached $378 million in FY21, a 15% increase from the previous year, with Bangladesh, Malaysia, the United Arab Emirates, and Sri Lanka being the top importers.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The US and Japan have raised questions on India’s frequent ban on onion exports at the World Trade Organization (WTO), claiming that such sporadic and frequent bans without prior notification put importing countries in a difficult position. Simultaneously, in Maharashtra onion growers have also demanded that the government draft a comprehensive policy on the import and export of onion, instead of taking ad hoc decisions. Both US and Japan have asked India to clarify its actions and give reasons why it has not opted for an export quota, which would allow a certain amount for exports. At the meeting of WTO’s committee on agriculture last month both countries said India was requested to explain its onion exports prohibition. The sudden export ban had also drawn protests from onion farmers as well as neighbouring countries such as Bangladesh and Nepal that also depend heavily on Indian onions. In September last year, the government had banned exports of all varieties of onions, ...

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