India extends onion export ban indefinitely

The Indian government announced on the evening of March 22 that the onion export ban implemented in December last year will remain in effect until further notice. Many local Indian exporters expressed surprise at this decision.

The ban was originally scheduled to expire at the end of March. Since its implementation, local onion prices in India have dropped by more than half, and there will still be fresh harvests to supply the local market.

Onion prices at major wholesale markets in Maharashtra, India's largest onion-producing state, plummeted from Rs 4,500 per 100 kg in December to Rs 1,200 currently.

India is one of the largest exporters of onions, and the delay affects countries such as Bangladesh, Malaysia, Nepal and the United Arab Emirates, which rely heavily on Indian onion imports to fill domestic supply gaps and are currently forced to import from other countries at higher prices.

India's onion exports hit a record high of 2.5 million tonnes in the financial year ending March 31, 2023. However, with the ban extended indefinitely, the future of Indian onion trade remains uncertain, leaving domestic and international markets in a state of flux.