Ban on onion exports

Amidst the souring prices of Indian onions due to a seasonal shortage which has been worsened by flooding in several states, the government has decided to ban exports of onions. This ensues the move in June when India, the world’s largest onion exporter, withdrew 10 per cent export incentives on onions after prices started to rise due to dwindling supplies from last year’s harvest and a delay in planting of the summer-sown crop. It had also imposed a US$ 850/tonne minimum export price (MEP) on onion shipments, earlier this month.