The central government of India has announced the indefinite suspension of onion exports, as stated in a release issued on Saturday.
Last December, the Indian government had initially imposed a temporary ban on onion exports to stabilize the domestic market, effective until March 31. However, the recent statement extends the ban until further notice.
Political analysts speculate that this decision might be influenced by the forthcoming Lok Sabha elections.
An official from a Mumbai-based onion export company, speaking anonymously, criticized the move, describing it as unnecessary and perplexing. He highlighted the drastic drop in onion prices within the country, emphasizing that the new crop is expected soon, raising concerns about market conditions.
Before the export ban in December, onions were being sold at Rs 4,500 per 100 kg in Maharashtra`s wholesale markets. Since then, prices have plummeted, with the current wholesale price hovering around Rs 1,200 per 100 kg.
The official further expressed apprehension that the indefinite export suspension could lead to further price declines in the coming days.
