India extends ban on onion exports

Traders anticipated lifting of ban as local prices have more than halved since export restrictions were implemented

MUMBAI:

India has extended its ban on onion exports indefinitely – a surprise move that comes ahead of a general election and is set to exacerbate high prices in some overseas markets.

Imposed by India – the world’s biggest exporter of the vegetable – in December, the ban was due to expire on March 31. Traders had anticipated it would be lifted as local prices have more than halved since the export restrictions were implemented and this season’s crop is yielding fresh supplies. However, the government issued an order late on Friday that the ban will remain in place until further notice.

“The extension is surprising and completely unnecessary, considering the falling prices with rising supplies from the new season crop,” said an executive at a Mumbai-based export firm, who declined to be identified.

Published in The Express Tribune, March 24^th, 2024.

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