Onion export ban unlikely to be lifted before Lok Sabha polls
consumer affairs ministry is unlikely to lift the ban on onion exports despite a fall in prices as the government does not want to take any decision that will make onions expensive before the general elections, an official privy to the development said. «There are instructions from the top to not touch onions before the elections,» the official told ET.
This comes amid requests from traders to open up onion exports now that prices have moderated. Following India's ban on export of onions imposed on December 8, wholesale onion prices had crashed to ₹5-10/kg, leading to widespread protests of the farmers in the growing regions.
The export ban also increased the global shortage of the kitchen staple at a time when the demand is at its peak, due to the upcoming Ramadan festival, industry insiders said.
Currently, wholesale onion price is around ₹19/kg at the Lasalgaon market.
The caution against allowing exports comes following high-level deliberations in the government amid expectations of a poor crop that is likely to keep prices firm in the coming months, people cited above said.
The rabi output is seen about 24% lower this year compared to last year. «Farmers are going to hold their produce this year as they know that the crop is less,» one of the sources said.
The government has been allowing limited exports of onions to select countries. On March 1, for example, it allowed export of 50,000 tonnes of onion to Bangladesh through National Co-operative Export Ltd (NCEL). The Centre has also allowed export of
