The ban on the export of onion will continue till March 31st, to keep prices under check and ensure domestic availability, an official said on Tuesday.
Ban on the Export of Onion
On December 8th, 2023, The government banned the export of onion till March 31st. Consumer Affairs Secretary Rohit Raman Singh confirmed that there is no change in status and the ban on the onion will continue. He added the government is focusing on making onions available at reasonable prices to customers.
In October 2023, the government decided to sell buffer onion stock at a subsidized rate of Rs 25 per kg in the retail market for customers’ benefit. In August, India banned the export of onions till December 31st.
Production of Onion
On the report of the lifting of the onion export ban, wholesale onion prices shot up by 40.62 percent to Rs 1,800 per quintal on February 19th from Rs 1,280 per quintal on February 7th in the country’s largest wholesale onion market, Lasalgaon.
As per the source, Rabi (winter) onion production is expected to be lower, especially in Maharashtra, the ban is unlikely to be lifted even after March 31st. In 2023, rabi season onion production is estimated to be at 22.7 million tonnes.
The Agriculture Ministry will soon access the onion production coverage in key growing states of Maharashtra, Madhya Pradesh, and Gujrat in the coming days. The export of onion is allowed to a friendly country on case to case basis, after approval from the ministry.
Why did the government ban the Export of Onion?
The ban was put on the export of onion, after the delay in Kharif’s arrival, the worldwide scenario, the quantity of onion shipped, and trade and nontrade restrictions imposed by major suppliers like Egypt, Turkey, and Iran. The government while checking the benefit of farmers, is acquiring onions from farmers through Price Stabilization Fund. 
The government is aiming at price stability and onion crop availability that ensures both farmers and customers are benefited. The procurement of onions through the Price Stabilization Fund will continue to provide remunerative prices to farmers, making onions available to customers at reasonable rates.
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