To ensure adequate domestic supply and control rising prices, the government has prohibited onion exports until March 31, 2024. The Directorate General of Foreign Trade announced this change in a recent notification, amending the onion export policy from “free” to “prohibited.”
This decision comes after unseasonal rainfall in Maharashtra damaged onion crops, leading to a significant increase in wholesale prices, reaching up to Rs. 40 per kg. The export ban aims to increase domestic availability of onions and stabilize prices for consumers. Traders and farmers anticipate a significant decrease in onion prices in January due to this intervention.
The government’s action highlights its commitment to food security and ensuring affordable food for its citizens. By restricting exports, the government prioritizes the needs of the domestic market and aims to curb inflation associated with rising onion prices. This measure is likely to be welcomed by consumers and domestic onion traders who have been facing the brunt of the recent price surge.
