India imposes indefinite ban on onion exports again

India, the world's largest onion exporter, once again has announced an indefinite ban on onion exports. Analysts believe that the authorities have taken such steps to keep the market situation normal in view of the upcoming elections in the country.

India banned the export of onions in December last year which was increased to March 31 next. But before the end of this period, the country announced a new ban on onion exports.
An order issued on Friday (March 22) afternoon said the ban on onions will remain in place until further notice.

Mentionable, some countries like Bangladesh, Malaysia, Nepal and the United Arab Emirates are dependent on India to meet their onion demand. These countries have been grappling with high prices of onion ever since India imposed the ban on onion exports.

An official of a Mumbai-based export organisation, on condition of anonymity, told Reuters, “The supply of the onion of the new season is increasing in the market. As a result, the price of onions is gradually decreasing in the market. The extension of the ban in this situation is surprising and totally unnecessary.”