India has banned the export of onions until March 31, 2024, after domestic wholesale prices went up to ₹ 40/kg in Maharashtra due to unseasonal rainfall. According to traders and farmers, this move will likely result in a significant drop in onion prices in January.
An official team from the central government has recently surveyed fields in Maharashtra to assess the damage caused by the hefty rainfall. In recent weeks, wholesale prices for good-quality onions went up to ₹ 38-41/kg due to strong export demand from Bangladesh, which had supported domestic prices.
Traders predicted that prices would fall in another week as the arrival of kharif onions increased every day. “The arrival of late kharif and kharif onions will flood the markets in January, bringing prices down to as low as ₹ 10-15/kg,” said a Pune-based onion trader who did not want to be identified.
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The main season for onion exports is from December to February. It also benefits farmers because onions harvested during this time do not have a good shelf life. Insiders in the trade are concerned that the export ban will discourage farmers from planting rabi onions.
Egypt and Turkey, two major onion exporters, banned onion exports this year. Pakistan’s onion production is lower, and Holland has also resorted to imports.
Due to previous onion export bans imposed by the Indian government, India’s share of several major export markets has shrunk dramatically, dropping from 80% to as low as 30% in some countries.
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