In an effort to stabilize domestic onion prices and ensure sufficient supply within the country, the Indian government has imposed a ban on onion exports until March 31, 2024. The Directorate General of Foreign Trade issued a notification, revising the export policy from unrestricted to prohibited.
The decision comes in response to a notable surge in onion prices during October, with costs doubling in just a few days. To curb this trend and safeguard the interests of consumers, the export prohibition will be effective starting Friday.
Under the new export restrictions, onions can only be shipped under specific conditions:
- Ongoing Loading: Export is allowed if the loading of onions onto the ship has commenced before the notification.
- Berthed Vessels: In cases where the shipping bill is filed, vessels have already berthed, or arrived and anchored in Indian ports for loading, with a rotation number allocated before the notification.
- Customs Handover: Consignments handed over to Customs or entered the Customs Station for exportation before the notification, with verifiable evidence of date and time stamping.
This measure aims to ensure that the export ban does not disrupt ongoing processes and commitments while addressing the immediate concerns related to onion prices.
Earlier this week, the government also imposed restrictions on ethanol production, prohibiting the use of sugar cane juice or sugar syrup for ethanol production in the ethanol supply year 2023-24. Additionally, bans were instituted on the export of wheat and non-Basmati white rice.
