India's government lifts ban on onion exports, sets floor price
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
India has lifted restrictions on the export of onions, according to an official notification on Saturday, a day after the government announced a 40% export duty.
The export ban was imposed by the world's biggest exporter of the vegetable last December and then extended in March.
The policy changes comes in the middle of staggered voting in India's national election in which Prime Minister Narendra Modi is seeking a rare third term.
Parts of India's onion producing belt in the western state of Maharashtra are yet to vote.
While lifting the ban, the government also announced a minimum export price of $550 per metric ton for exports.
"This is after taking into account estimated rabi production 2024 and good kharif (summer-sown) prospect because of above normal monsoon," a government official said.
Onions, which are a major ingredient in Indian food and a politically sensitive commodity, are cultivated three times a year - in monsoon, winter and summer.
India's onion production in the rabi season in 2024 is estimated to be 19.1m tons, which is a "comfortable" level to allow overseas sales given local monthly consumption is about 1.7m tons, the official added.
Traders estimate that India, which has shorter shipment times than rivals such as China or Egypt for many markets, accounts for more than half of all onion imports by Asian countries.
India exported a record 2.5m metric tons of onions in the year-ending March 31, 2023.
