India has imposed a ban on onion exports until March 31. With this measure, the Indian government hopes to put a stop to rising onion prices on the domestic market. Indian farmers are not happy with the government intervention.
India's Directorate General of Foreign Trade announced last week that the onion export protocol has been immediately changed from permitted to prohibited until March 31, 2024. As of August 19, India had already imposed an export tax on onions of 40% (with a minimum price of $800 per tons) in force until December 31. By restricting exports, the Indian government hopes to bring down domestic food prices. According to the Economic Times India, the retail price of onions in India has almost doubled in a year.
Protests
Indian onion growers are furious about the export ban. The Hindu writes that highways have been blocked in several places by concerned farmers. "Onion prices have recently fallen and the export ban is leading to losses," Balasaheb Kshirsagar, leader of an Indian farmers' association, told the same newspaper. Currently, grower prices range from 1.000 to 1.200 Indian rupees per yard (converted approximately €11,11 to €13,33 per 100 kilos). Nevertheless, the wholesale price is 3.000 rupees per quintal (approximately €33,33 per 100 kilos). The middleman thus maintains inflation. Kshirsagar therefore wants growers to be able to sell onions directly to the government. "Farmers have already suffered losses due to excessive precipitation and hail. The export ban must be lifted to support the farmers."