India has lifted a ban on onion exports, Food Minister Ram Vilas Paswan said on Wednesday, as costs of the bulb have fallen pointedly over a recent couple of weeks on desires of a big yield.
“Since the price of onions has stabilized and there is bumper onion crop, the government has decided to lift the ban on the export of onions,” Paswan said on Twitter.
India is the world’s largest exporter of onion. It prohibited exports of onions in September, a year ago, to keep domestic supplies full after flooding occurred in various states that aggravated seasonal deficiencies, leading to skyrocketing of local prices.
Wholesale costs of onions have more than halved over the recent five weeks, as indicated by information gathered by the National Horticultural Research and Development Foundation, a government office.
India exported fresh and frozen onions worth $496.82 million in the year 2018-19. Bangladesh, Sri Lanka, and the UAE are the top three countries for Indian onions. An official stated that “supplies have improved. So the ban is being reconsidered.”
Onions have discounted from Rs 150-160 last month and are now priced at Rs 60-70 per kg. The commodity’s prices increased significantly because of an estimated 25% fall in Kharif production in the year 2019-20, as compared to last year due to late monsoon.
As per official data, inflation in onions increased from 172.3% in November to 455.8% in December.