India extends onion export ban indefinitely ahead of general election

Fresh Onion

Vegetables

India

Regulation & Compliances

Market & Price Trends

Published Mar 24, 2024

Tridge summary

India, the world's largest onion exporter, has indefinitely extended its ban on onion exports, which was initially imposed in December and set to expire on March 31. Despite a decrease in local prices and an increase in supplies from the new season crop, the government has decided to maintain the ban. This decision is expected to exacerbate high prices in overseas markets, particularly affecting countries like Bangladesh, Malaysia, Nepal, and the UAE, which depend on Indian onions for domestic demand.

Disclaimer: The above summary was generated by a state-of-the-art LLM model and is intended for informational purposes only. It is recommended that readers refer to the original article for more context.

Original content

MUMBAI (Reuters) -- India has extended its ban on onion exports indefinitely -- a surprise move that comes ahead of a general election and is set to exacerbate high prices in some overseas markets. Imposed by India -- the world's biggest exporter of the vegetable -- in December, the ban was due to expire on March 31. Traders had anticipated it would be lifted as local prices have more than halved since the export restrictions were implemented and this season's crop is yielding fresh supplies. However, the government issued an order late on Friday that the ban will remain in place until further notice. "The extension is surprising and completely unnecessary, considering the falling prices with rising supplies from the new season crop," said an executive at a Mumbai-based export firm, who declined to be identified. Onion prices in some wholesale markets in Maharashtra, the biggest onion-producing state, have fallen to 1,200 rupees ($14) per 100 kg from 4,500 rupees in December, the ...

Source: Nikkei