India Extends Ban on Onion Exports Indefinitely
Desk Report, March 24, 2024: The Ministry of Commerce and Industry has extended the ban on onion exports until further notice, according to an announcement made on March 22. This decision comes after the initial prohibition, which was set to expire on March 31, 2024.
The Directorate General of Foreign Trade (DGFT), a division of the ministry responsible for export and import matters, released the notification.
“The Central Government, in exercise of powers under the Foreign Trade (Development and Regulation) Act, 1992, has amended Notification No. 49 dated December 7, 2023. The export prohibition on onions under HS Code 0703-10-19, which was valid until March 31, 2024, is extended until further orders,” the notification stated.
India had initially imposed the ban on exporting onions in December 2023, with the restriction set to last until March 2024. However, the DGFT’s recent notification suggests that onion exports could be allowed to other countries. This would be based on approval from the central government, contingent on requests made by these nations.
Earlier this month, the Indian government permitted the export of 50,000 tonnes of onions to Bangladesh and 14,400 tonnes to the UAE. The DGFT notification highlighted a quarterly export limit of 3,600 tonnes specifically for the UAE.
Furthermore, the central government has set a minimum export price (MEP) of USD 800 per tonne for onions. This pricing, effective from October 29, is determined on a free-on-board basis.
In summary, India’s decision to extend the onion export ban underscores the government’s ongoing efforts to regulate domestic onion prices and availability.
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