India extends ban on onion exports until further orders

New Delhi: The government has extended the ban on the export of onions until further orders, according to the Ministry of Commerce and Industry.

Earlier, the export of onions was prohibited till March 31, 2024.

The Directorate General of Foreign Trade (DGFT), a branch of the ministry responsible for handling export and import affairs, has announced the extension in a notification dated March 22.

"In exercise of powers conferred by Section 3 read with Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 (No. 22 of 1992), as amended, read with Paras. 1.02 and 2.01 of the Foreign Trade Policy, 2023, the Central Government hereby amends Notification No. 49 dated December 7, 2023, regarding the export policy of onions," the notification read.

"The export prohibition on the export of onions under HS Code 0703-10-19 valid until March 31, 2024, is extended until further orders," it mentioned.

India had, in early December 2023, prohibited the export of onions until March 2024. The DGFT notification said the export of onions will be, however, allowed based on permission granted by the central government to other countries based on the requests made by the countries.

However, earlier this month, the Center allowed the export of 50,000-tonne onions to Bangladesh and 14,400-tonne onions to the UAE.

For exports to the UAE, a ceiling of 3,600 tonnes is kept every quarter, the DGFT notification read.

The central government subsequently set a minimum export price (MEP) of USD 800 per tonne on a free-on-board basis for the export of onions, with effect from October 29.