India (Commonwealth) _ Indian Commerce Ministry has announced that the export restriction on onions has been prolonged by the government until additional regulations are issued. It was earlier forbidden until this year’s March 31.
The export ban on onions, which is in effect until March 31, 2024, has been prolonged until additional directives are given, according to a March 22 announcement from the Directorate General of Foreign Trade (DGFT). The ministry’s division that handles matters pertaining to imports and exports is called DGFT.
The federal government has decided to keep the export restriction on onions in place until further instructions in an effort to keep the price of onions in the nation under control. The move was made in the midst of India’s holiday season to improve local supply and pricing stability. The center had already made the decision to restrict exports through March 31 of current year.
The government outlawed the export of onions, for the benefit of the ignorant. The output of onions was predicted to have reached 22.7 million metric tons in the 2023 rabi season. Exporting onions to friendly nations is permitted on a case-by-case basis with inter-ministerial group clearance.
The export ban on onions, which is in effect until March 31, 2024, has been prolonged until additional directives are given, according to a March 22 announcement from the Directorate General of Foreign Trade (DGFT). The ministry’s division that handles matters pertaining to imports and exports is called DGFT.
Bangladesh and UAE only allowed
The Directorate General of Exports has announced that the government had previously approved the shipment of 64,400 metric tons of onions to Bangladesh and the United Arab Emirates via National Cooperative Exports Ltd (NCEL).
According to notifications released by the Directorate General of Foreign Trade (DGFT), the government had previously approved the shipment of 64,400 metric tons of onions to Bangladesh and the United Arab Emirates via National Cooperative Exports Ltd (NCEL). Bangladesh is authorized to export 50,000 metric tons of onions, and the United Arab Emirates is authorized to receive 14,400 metric tons of onions.
Price regulation
The government has implemented a number of measures to regulate pricing. Onion exports were subject to a minimum export price (MEP) of USD 800 per tonne from October 28, 2023, until December 31, 2023. India levied a 40% export tax on onions in August, which would remain in effect until further notice. Onions are notably a politically delicate item.
According to the announcement, the NCEL will cooperate with the Department of Consumer Affairs to determine the specifics of the shipments to Bangladesh. The government is closely monitoring domestic prices and does not want them to spiral out of control, so it wants the exports to happen in a measured way.
There is a quantitative cap of 3,600 metric tonnes each quarter on the notice that permits the shipment of 14,400 tonnes of onions to the UAE through NCEL. The Ministry of Commerce and Industry reports that the export of onions has been prohibited by the government until further orders.
Previously, exporting onions was forbidden until March 31, 2024. In a statement dated March 22, the ministry’s Directorate General of Foreign Trade (DGFT), which is in charge of managing import and export matters, issued the prolongation.
The Foreign Trade (Development and Regulation) Act, 1992 (No. 22 of 1992), as amended, and Paragraphs 1.02 and 2.01 of the Foreign Trade Policy, 2023, are the sources of authority that the Central Government utilised to amend Notification No. 49, dated December 7, 2023, concerning the export policy of onions.
It stated that the export ban on onions under HS Code 0703-10-19, which is in effect until March 31, 2024, is prolonged indefinitely, pending additional directives. Early in December 2023, India said that onions could not be exported until March 2024. According to the DGFT announcement, exports of onions will be permitted, but only if the central government grants authorization to other nations in response to those nations’ requests.
On the other hand, the Center approved the shipment of 14,400 tons of onions to the UAE and 50,000 tons to Bangladesh earlier this month. According to the DGFT announcement, a cap of 3,600 tonnes is maintained for exports to the UAE each quarter. Subsequently, the federal government established, effective October 29, a minimum export price (MEP) for onions exports of USD 800 per tonne on a free-on-board basis.
