Centre removes ban on onion export from January 1, 2021

The central government on December 28, 2020, removed the prohibition on the export of all kinds of onion from January 1, 2021. The variety of onions, including Krishnapuram Onions and Bangalore Rose Onions have been allowed to export from January 1.

According to the notification released by the Directorate General of Foreign Trade, the export of all varieties of onions has been made free with the effect from January 1. The Directorate General of Foreign Trade is an arm of the Ministry of Commerce that deals with the issues pertaining to exports and imports.

The government had earlier imposed the ban on the export of onions on September 14, 2020, owing to the hike in prices which raised a concern regarding the supply crunch of the onions in the local markets.

PM @NarendraModi जी की सरकार द्वारा प्याज के निर्यात की अनुमति देने का निर्णय लिया गया है। निर्यातक अब देश से प्याज का निर्यात कर सकते हैं।

इससे हमारे कृषि उत्पादों की विदेश तक पहुंच होगी, तथा साथ ही किसानों की आय भी बढ़ेगी। pic.twitter.com/dF636xkwBt

— Piyush Goyal (@PiyushGoyal) December 28, 2020

Extension of relaxed norms for onion import:

Earlier in December 2020, the central government had decided to extend the relaxed norms on the import of onions until January 31, 2021. The step was taken in an attempt to boost the domestic supply of onions while also ensuring that there is price stability in the market.

According to the Ministry, the relaxation of the norms, however, will be subjected to certain conditions. The imported onions that have not been fumigated will be undergoing the procedure at the Indian ports.

Ban on onion export in 2019:

The last time the government banned the export of onions was on September 29, 2019, after the bad crop had hit the supplies and had led to the rise in price in the local markets. The ban was lifted again on March 15, 2020, while the price of onions in December 2019 saw a soaring rise to Rs. 80 per kg in Delhi.

Price rise of onion in India:

The significance of onion prices is quite high because of its massive popularity in Indian households across socio-economic classes.

While consumer behavior is not noted to be sensitive to the increasing prices of onion as there is no alternative to it, their finances are very much sensitive to its fluctuating prices. The prices of onion have started stabilizing to the extent with their availability in the market at Rs. 40 per kg in Delhi, which is down from Rs. 65-70 per kg back in October 2020.