NEW DELHI, India, May 4: India has lifted its ban on onion exports, as announced in an official notification on Saturday, following the government’s imposition of a 40% export duty. This decision comes after the world’s leading onion exporter initially enforced the export ban last December and extended it in March.
The timing of the policy shift coincides with staggered voting in India’s national election, where Prime Minister Narendra Modi is vying for an unprecedented third term. Notably, parts of Maharashtra, a key onion-producing region in India’s western state, are yet to cast their votes.
Alongside lifting the export ban, the government has introduced a minimum export price of $550 per metric ton for onion exports. This move is attributed to considerations of the estimated rabi production in 2024 and favorable kharif (summer-sown) prospects due to above-normal monsoon forecasts, according to a government official.
Onions, integral to Indian cuisine and a politically sensitive commodity, are cultivated thrice yearly during the monsoon, winter, and summer seasons. With an estimated rabi season production of 19.1 million tons in 2024, the government deems this level to be “comfortable” for overseas sales, given that local monthly consumption stands at approximately 1.7 million tons.
Traders note that India, with its shorter shipment times compared to competitors like China or Egypt, dominates more than half of all onion imports by Asian countries. In the fiscal year ending March 31, 2023, India achieved a record onion export volume of 2.5 million metric tons.