In September, to fill the demand and supply deficit in the domestic market, the government had banned the export of onions.
Now it has agreed to lift all onion export restrictions from 1 January 2021, the Ministry of Commerce and Industry informed. The decision came on the basis of the introduction of a new crop on the markets, whichis likely to lower onion prices.
Reuters announced that wholesale prices of onions have more than halved in the last four weeks, citing data collected by the National Horticultural Research and Development Foundation government department.
In September, to fill the demand and supply gap for vegetables in the domestic market, the government banned the export of all varieties of onions. The ban came after the government expected a vegetable shortage as exports shot up 30 percent in the time from April to July, Mint said.
Onion a staple of South Asian cuisine, and India is the world's largest exporter of onions. The top Indian onion importers are Bangladesh, Malaysia, the United Arab Emirates and Sri Lanka.
Around April and June in the financial year of 2020-'21 the nation exported onions worth $198 million and $440 million in 2019-'20.
