India lifts ban on onion export

India lifted the ban on onion exports on Saturday (May 4) after nearly five months of restricting the shipment of the widely consumed vegetable. The initial restriction was imposed to stabilize prices in the domestic market prior to the election.

As per the report, the Directorate General of Foreign Trade (DGFT), the central authority overseeing foreign trade, has established a minimum export price (MEP) of $550 per ton of onion. According to a group of political analysts in India, this decision was taken by BJP, the sitting party in the central government, due to the ongoing Lok Sabha elections.

Following the ban on onion exports in December last year, farmers in India's western state of Maharashtra incurred significant losses, fueling discontent towards the central government. Concurrently, BJP candidates are vying for parliamentary seats across the state in the ongoing election.

Several political analysts suggest that the BJP has lifted the ban to prevent farmers' grievances from influencing the election outcome. Meanwhile, amid the ban, the Indian government cautiously exported onions to Bangladesh, Sri Lanka, and the UAE in limited volumes.