India Halts Onion Exports Until March 2024: DGFT Announcement and Price Controls

In a late-night development on Thursday, India has officially prohibited the export of onions until March 2024, according to a notification from the Directorate General of Foreign Trade (DGFT). However, the notification clarifies that the export of onions may be permitted based on specific permissions granted by the central government to other countries, contingent upon their requests.

Presently, onions are retailing at approximately ₹60 per kg in local markets. To curb escalating prices and enhance domestic supplies, the government had previously imposed a 40 per cent duty on onion exports in August, effective until December 31, 2023. Subsequently, a Minimum Export Price (MEP) of USD 800 per tonne was set for onion exports from October 29, 2023.

However, the 'Bangalore rose onion' variety has been exempted from export duties, provided exporters furnish a certificate from the Horticulture Commissioner, Government of Karnataka, verifying the item and quantity of Bangalore Rose Onion slated for export. The Bangalore rose onion, distinguished by its Geographical Indication tag since 2015, is cultivated in and around Bengaluru, Karnataka.

In response to surging onion prices, the central government has been releasing onions from its buffer stock. For the 2023-24 season, the government had planned to maintain a buffer stock of 3 lakh tonnes, an increase from the 2.51 lakh tonnes maintained in the previous season (2022-23). The buffer stock serves as a strategic reserve to address contingencies and stabilize prices, particularly during lean supply periods.

It's worth noting that Rabi onions, harvested from April to June, contribute to 65 per cent of India's onion production, meeting consumer demand until the Kharif crop is harvested in October-November. Stay tuned for further updates on the evolving onion export situation in India.