CrackitToday App

Ban On Onion Exports

Ban On Onion Exports:

The Director General of Foreign Trade (DGFT) has announced a ban on onion exports until March 2024, issuing a notification converting the export policy of onions from ‘Free’ to ‘Prohibited’.

  • The current supply shortage, caused by early depletion of 2022-23 rabi season stocks and anticipated lower kharif 2023 output, along with increased festive demand, has led to a significant rise in onion prices.
  • The government has also revised the stock limit for wheat, the stock limit has been halved to 1,000 tonnes for wholesalers, and for retailers to 5 tonnes.
  • By restricting onion exports, the government aims to prevent price surges or fluctuations within the domestic market.
  • To combat spiraling prices, the Centre had imposed a Minimum Export Price of USD 800 per tonne on onions in October 2023. Earlier, in August, the government imposed a 40% export duty on onions.
  • Onions have a history of significant price volatility, and an export ban helps in stabilizing prices, making them more affordable for local consumers.