Centre lifts 4-month ban on export of all varieties of onions from January 1, 2021

In a major move, the Central government allowed the export of all varieties of onions with effect from January 1, 2021. Earlier, the Directorate General of Foreign Trade had banned onion exports from September 14 reportedly due to the spike in food inflation coupled with the steady rise in wholesale prices of onions. Moreover, this decision was attributed to the significant increase in demand from some countries. For instance, the demand from Sri Lanka picked up due to the heavy destruction of the onion crop owing to rains. However, it is pertinent to note that the export ban did not include cut and sliced onions or those broken in powder form. 

Politicians from Maharashtra opposed onion export ban

The Centre's step to impose a ban on the export of onions had met with stiff resistance from the ruling party and opposition in Maharashtra. Leader of Opposition Devendra Fadnavis observed that the onions cultivated in Maharashtra are in high demand at the international level. Noting that the onion farmers are shocked and dejected due to the export ban, Fadnavis expressed hope that Goyal would take a swift decision.

Meanwhile, NCP supremo Sharad Pawar revealed that the export ban has elicited strong reactions from the onion growing belt in Maharashtra. He met Piyush Goyal and highlighted that onion farmers are mainly small landholders. He reckoned that the Centre's sudden decision was a "major blow" to the country's image as a reliable exporter of onions in the international market. Furthermore, Pawar opined that Pakistan and other onion exporters will immensely benefit from this situation. 

Read: Govt Extends Relaxed Norms For Onion Imports Till Jan 31

Two varieties of onions were exempted

On October 9, the Union government provided partial relaxation by exempting Bangalore Rose and Krishnapuram onions from the export ban until March 31, 2021. This was done as both these varieties of onions are grown mostly for the purpose of export. For instance,  Krishnapuram onions known are imported by countries like Malaysia, Hong Kong, Thailand, and Singapore. The export of these onions was permitted only through the Chennai port on the basis of documentation from designated state government and DGFT officials. 

Read: Wholesale Dealers Will Not Be Allowed To Store More Than 25 MT Of Potato & Onion: WB Govt