India Extends Onion Export Ban Until Further Orders

The Ministry of Commerce and Industry announced that the ban on exporting onions has been extended until further notice. Previously, the prohibition on onion exports was in place until March 31, 2024.

The extension was announced by the Directorate General of Foreign Trade (DGFT), a division of the ministry that deals with export and import matters, in a notification dated March 22.

"In exercise of powers conferred by Section 3 read with Section 5 of the Foreign Trade (Development and Regulation) Act, 1992 (No. 22 of 1992), as amended, read with Paras. 1.02 and 2.01 of the Foreign Trade Policy, 2023, the Central Government hereby amends Notification No. 49 dated December 7, 2023, regarding the export policy of onions," the notification read.

"The export prohibition on the export of onions under HS Code 0703-10-19 valid until March 31, 2024, is extended until further orders," it mentioned.

India, in December 2023, implemented a ban on exporting onions until March 2024. According to a notification from the DGFT, the export of onions may be permitted to other countries upon receiving approval from the central government, based on their requests.

Earlier this month, the Center granted permission for the export of 50,000 tonnes of onions to Bangladesh and 14,400 tonnes of onions to the UAE.

According to the DGFT notification, there is a quarterly limit of 3,600 tonnes for exports to the UAE.

The central government later established a minimum export price (MEP) of USD 800 per tonne for the export of onions, starting from October 29. This price is based on a free-on-board basis.

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