India set to lift ban on onion exports but may cap shipments at 3 lakh tonnes

The Central governement has agreed to lift the restriction on onion exports but will limit shipments. Farmers, meanwhile, claim that the decision will benefit traders more.

Pawar, who represents Dindori (Nashik rural seat), informed local media that while the prohibition is being lifted, the terms and conditions, including the size of the cap, will be defined in an upcoming government announcement. 

According to sources, the government will allow onion exports of up to 3 lakh tonnes. The prohibition on onion exports was implemented on December 7, 2023. It was scheduled to last until March 31, in an effort to meet domestic onion demand and stabilize wholesale prices.

Traders have expressed worries about the export procedure, requesting that the government relax the ban on all dealers, not only government-to-government exports. They think that this would provide greater flexibility and benefit a broader spectrum of market participants.

Source: https://www.thehindubusinessline.com