2020-09-15 03:05:42 BdST
India bans export of onions again
The government of India on Monday prohibited the export of all varieties of onion except in cut, sliced or powdered form.
“The export of all varieties of onion…is prohibited with immediate effect,” the Indian Directorate General of Foreign Trade (DGFT) said in a notification.
The ban includes Bangalore rose onions and Krishnapuram onion.
“Rates have increased and there is a shortage of onion in the domestic market. While this shortage is seasonal, a huge amount of exports were done in the last few months during the Covid-19 pandemic,” said an official aware of the development.
India exported $198 million of onions in the April-June period of FY21 and $440 million in the entire 2019-20.
Bangladesh, Malaysia, UAE and Sri Lanka are the top importers of Indian onions.
India had last year banned the exports of the key kitchen staple in the wake of its rising prices in the country and set the minimum export price (MEP) of onion at $850 a tonne to curb its shipments and help bring down soaring prices in the domestic market due to floods in parts of major growing states of Maharashtra and Karnataka.
The news of the latest ban on onion export by Indian government traveled to Bangladesh domestic market quickly.
Onion prices, which already increased 54-74 percent in Bangladesh over the last two and half weeks amid surge in import costs, started rising again from Monday evening at both retail and wholesale amid the ban.
Retail prices of onions increased to Tk 55-75 a kg until 8:00 pm on the day from Tk 50- 70 a kg in the morning.
Wholesale prices witnessed Tk 7.0-9.0 a kg rise until Monday evening, said traders.
Indian onion prices shot up to Tk 42-47 a kg and local Tk 52-57 a kg at wholesale like Shyambazar on the day until 8:00 pm.
Traders said India’s decision for stopping export like last years’ September could make onion market volatile in Bangladesh.
Unauthorized use or reproduction of The Finance Today content for commercial purposes is strictly prohibited.