Govt maintains onion exports curb to keep prices under check
In a move to protect consumer interests, the government has decided to continue prohibiting onion exports for an unspecified duration. The Directorate General of Foreign Trade (DGFT) recently notified that the export ban, which was set to expire at the end of March, will now remain in force until further notice.
Onion is a kitchen staple and any fluctuations in its prices have a direct impact on household budgets across the country. With the aim of making the commodity available at affordable rates nationally, authorities had imposed restrictions on overseas shipments in September last year when wholesale rates started surging. This was then periodically extended as wholesale rates remained at elevated levels owing to intermittent supply disruptions and crop damage.
As per sources, average wholesale prices are still hovering above the Rs 15/kg affordable threshold in major producing regions despite recent arrivals from new kharif crops. International buyers are also actively scouting for supplies from alternative exporting countries like Egypt. Keeping these factors in mind, the government has chosen to continue the curb as a precautionary measure.
The move is in line with the government's priority of ensuring reasonable rates for consumers and preventing any shortage situations from developing, especially ahead of the summer season when demand peaks. Market experts say flexibility will be exercised in the decision based on arrival trends and price stability. Any relaxation will also depend on global supplies and export orders at that time.
The extension notification maintains that the ban will be in effect indefinitely until further notice. Authorities will continue monitoring the prevailing scenario and make appropriate policy announcements periodically to balance domestic needs and export opportunities.
