On Monday, Union Minister Piyush Goyal stated that the central government of India would allow export of onions from March 15. The Directorate General of Foreign Trade issued the statement. It is a move that comes in the wake of a bumper harvest that is likely to bring down prices of onions. Mr Goyal further said that the decision has been taken in the interest of farmers aiming to increase their incomes.
“The effect of the notification will be that the export of all varieties of onions has been made ”free” without any condition of ”Letter Of Credit” and ”Minimum Export Price”, with effect from March 15, 2020,” tThe Directorate General of Foreign Trade (DGFT) said in a statement.
“The government will allow the export of onions from March 15 for the benefit of the farmers,” Mr. Goyal said.
The export was restricted by India in September 2019, when prices had sky-rocketed above ₹100 per kg in many parts of the country. In the wake of excess monsoon rainfall and flooding in the farming states, the prices of summer crops or Kharif hiked, resulting in a shortage supply. The wholesale price of onion had touched the highest Rs.4,000 per quintal, which was the highest in the past four years.
Throughout most of this winter season, the prices of the winter crops or rabi remained high, leading the Centre to import onions, impose stock limits, and take steps against black marketers. In a tweet, last week, Food Minister Ram Vilas Paswan announced that the export ban would be lifted and that the expected monthly harvest for March was more than 40 lakh metric tonnes, in comparison to 28.4 lakh metric tonnes last year.