The Indian government has indefinitely extended its ban on onion exports, initially set to end on March 31, 2023, after domestic onion prices surged by 43% over the past year to about 30 cents per kilogram. This decision, aimed at curbing inflation and addressing concerns of the electorate, particularly the poor, ahead of upcoming parliamentary elections, has disrupted the global market. As the top onion exporter, India's move has led to price hikes in neighboring countries, with China likely to emerge as the biggest beneficiary. The decrease in India's onion production, leading to this export ban, is largely attributed to the adverse impacts of climate change, including inadequate rainfall.
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Original content
Once again, the government of India has extended the ban on the export of onions, but without specifying an end date for now, the electronic publication EastFruit reported. The previous ban was imposed in December 2023 and expired on March 31. As a reason for extending the period of validity of the measure, the Indian government cited the growth of onion prices in the domestic market by 43% in the last 12 months and are currently around 30 cents per kilogram, which is considered expensive in India. And since onion is among the most consumed vegetables, especially among the poor in India, its impact on inflation and voter sentiment is quite large, especially in the run-up to parliamentary elections. The publication makes a comparison with the average onion price in Ukraine, which is approximately the same, but is among the lowest in recent years. As India is the world's largest onion exporter in quantitative terms, it is not surprising that the decision to extend the export ban has ...
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