India has again extended its ban on onion exports, driving up prices in Asia and the Middle East

Fresh Onion

Vegetables

India

Regulation & Compliances

Market & Price Trends

Published Mar 26, 2024

Tridge summary

The Indian government has indefinitely extended its ban on onion exports, initially set to end on March 31, 2024, due to a significant 43% rise in domestic onion prices, now at about $0.3 per kg. This move, driven by a decrease in onion production attributed to climate change and insufficient rainfall, has led to market disruptions, especially in Bangladesh where onion prices have increased by over 10 cents per kg. As India is the world's largest onion exporter, this ban is poised to affect global onion prices, with China potentially stepping in to fill the market void left by India.

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

EastFruit analysts draw attention to another extension of the ban on onion exports, announced by the Indian government. The previous ban was introduced in December 2023 and was valid until March 31, 2024, but it was extended this time for an indefinite period. The government argued that domestic onion prices have increased by 43% over the year to about $0.3 per kg, which is considered a high price for India. For comparison, the average price for onions in Ukraine is now approximately the same, and this price is one of the lowest in recent years. With India being the world's largest onion exporter by volume, it is not surprising that the decision to extend the onion export ban has led to nervous reactions in the region's onion markets. There is real panic in the onion market in Bangladesh - where prices for this product soared after India's decision by more than 10 American cents per kg. Read also: Tajikistan has again banned the export of onions - or why are prices 7 times lower ...

Source: Eastfruit