India lifts ban on onion exports amid stable market situation

PTC News Desk: India on Friday lifted the ban on onion exports.  The decision follows robust kharif crop production in 2024 and positive monsoon forecasts, as well as stable market conditions at both the mandi and retail levels.

"All restrictions on onion exports have been removed with effect from today," said Nidhi Khare, Secretary, Department of Consumer Affairs, at a press conference in Delhi.

She went on to say, "This is basically taking into account the Rabi 2024 production and approved Kharif prospect because of above normal monsoon...The current market situation which was stable both at Mandi and retail and also the international availability and prices situation."

The official estimate for Rabi 2024 onion production is around 191 lakh tons, which is reasonable given the monthly domestic consumption of about 17 lakh tons. 

Onion exports were prohibited beginning on December 8, 2023, to increase domestic supply in the face of an estimated 20% decline in Kharif and late Kharif production. 

The export restriction assisted the government in keeping prices stable until the arrival of the Rabi 2024 crop. 

The lifting of export restrictions is expected to boost India's onion trade and help the country's overall economic stability.