MUMBAI: India has extended its ban on onion exports indefinitely – a shock transfer that comes ahead of a general election and is about to exacerbate excessive costs in some abroad markets. The ban was resulting from finish on March 31.
Traders had anticipated it will be lifted as native costs have greater than halved for the reason that export restrictions had been carried out and this season’s crop is yielding recent provides.
However, the federal government issued an order late on Friday that the ban will stay in place till additional discover.
“The extension is surprising and completely unnecessary, considering the falling prices with rising supplies from the new season crop,” stated an govt at a Mumbai-based export agency, who declined to be recognized.
Onion costs in some wholesale markets in Maharashtra, the most important onion-producing state, have fallen to 1,200 rupees ($14) per 100 kg from 4,500 rupees in December, the chief stated.
Prime Minister Narendra Modi is in search of a record-equalling third straight time period in upcoming elections that can be held over virtually seven weeks from April 19.
Countries resembling Bangladesh, Malaysia, Nepal and the United Arab Emirates rely on imports from India to fill home gaps in onion provide and plenty of of these nations have struggled with excessive costs for the reason that ban.
“India’s move is allowing rival exporters to quote much higher prices since buyers have no choice,” stated one other govt at an export firm based mostly in Mumbai.
Traders estimate that India, which has shorter cargo instances than rivals resembling China or Egypt for a lot of markets, accounts for greater than half of all onion imports by Asian international locations.
India exported a file 2.5 million metric tons of onions within the monetary yr that ended on March 31, 2023.
Traders had anticipated it will be lifted as native costs have greater than halved for the reason that export restrictions had been carried out and this season’s crop is yielding recent provides.
However, the federal government issued an order late on Friday that the ban will stay in place till additional discover.
“The extension is surprising and completely unnecessary, considering the falling prices with rising supplies from the new season crop,” stated an govt at a Mumbai-based export agency, who declined to be recognized.
Onion costs in some wholesale markets in Maharashtra, the most important onion-producing state, have fallen to 1,200 rupees ($14) per 100 kg from 4,500 rupees in December, the chief stated.
Prime Minister Narendra Modi is in search of a record-equalling third straight time period in upcoming elections that can be held over virtually seven weeks from April 19.
Countries resembling Bangladesh, Malaysia, Nepal and the United Arab Emirates rely on imports from India to fill home gaps in onion provide and plenty of of these nations have struggled with excessive costs for the reason that ban.
“India’s move is allowing rival exporters to quote much higher prices since buyers have no choice,” stated one other govt at an export firm based mostly in Mumbai.
Traders estimate that India, which has shorter cargo instances than rivals resembling China or Egypt for a lot of markets, accounts for greater than half of all onion imports by Asian international locations.
India exported a file 2.5 million metric tons of onions within the monetary yr that ended on March 31, 2023.
