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Onion export banned from India, a temporary hold

Onion export ban

India on Monday, 14 September 2020 prohibited all the onion exports including cut, sliced, or in powder form. This new rule was passed by the Directorate General of foreign trade(DGFT)
As per the latest notification, the restriction to ship Bangalore rose onions and Krishna Puram onion was also stated.

Earlier, the preceding categories were free to be exported

The reason this step was taken, was due to a shortage in the Indian market leading to increased rates.
Officials stated “ this shortage is seasonal as India supplied high quantities of onion in the past few months, while the world was under strict Pandemic lockdown”
India exported $198 million of onions in the April-June period of FY21 and $440 million in the entire cycle of 2019-2020.

Indian onions have high demand globally and this isn’t the first time a step like this was initiated.

Last year too, India banned the export of onions, an essential vegetable in Indian kitchens including onion prices were set to a minimum of $850 per tonne to curb its export and to assist in bringing down the soaring prices. This activity was conducted as floods in major states, last year, a spoiled major quantity of the vegetable.

Maharashtra and Karnataka are the highest onion producing states and growth levels in the states will decide the ban lift this year.

While the hold on export might be troublesome for some exporters, the hold is temporary as soon onion will be free to export.

Tradologie.com, a facilitator for onion exports has a certain outlook on this ban, follow through to understand.

Tradologie.com’s outlook on the onion export ban

We at Tradologie have always tried to make export effortless for our associates, this unfortunate ban might impact the trade market, however, we feel that this is a temporary hold to balance the domestic onion trade.
Once the ban is lifted, which we believe is very soon, re-starting onion export won’t be a problem.
Tradologie.com has a buyer guild of 2,00,000 ready-to-purchase buyers and negotiation with them will happen via a simple mobile app, complete eradication of calling, or emailing the buyer.
Creating a seamless channel for onion export.
Until then, let’s centralize the domestic onion market and come back with a bang.

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