FTP - Export of Onions Banned
GOVERNMENT has prohibited export of all varieties of onions with effect from 9 th September 2011. Notification No. 24(RE-2010)/2009-14 dated 18.02.2011, is amended. It was only on 7 th September that Government had made a steep increase in the Minimum Export Price of onions and that had brought down the prices in the domestic market by 11 percent. Now with total ban on exports, prices should come down further.
But traders in Nashik mandi, the largest onion trading centre are very unhappy and have declared a boycott of auctions. Government apparently doesn't want to be stuck with an onion crisis in the coming festive season.
While traders in India are unhappy, the traders in Bangladesh are worried, as the prices have gone up there due to India's ban on exports. Bangladesh depends on Indian exports for most of its onion supplies.
DGFT Notification No. 73(RE–2010)/2009-2014, Dated: September 09 2011