India has extended restrictions on the outbound shipments of onions until the end of this fiscal year or March 31, 2024, as the government seeks to ensure ample supply in the country and keep a lid on prices of this key political crop that in the past was associated with toppling governments.
The government had introduced a minimum export price (MEP) of $800 per tonne on onion exports from October 28 until December 31 this year. This measure aims to boost the availability of onions in the domestic market and control their prices.
The government today extended the same restriction on onion exports, Reuters reported citing a government order.
The all-India retail price of onions increased 94.39% to Rs 57.85 a kilogram on November 29 from Rs 29.76 per kg a year ago, according to the government data.
The government had imposed an export duty of 40% on onions in August. However, that did not help in curtailing their exports substantially. Rampant under-invoicing of exports undermined the duty, prompting the government to scrap it and impose a minimum export price of $800 per metric tonne on onions.
