Domestic Onion Prices in India Plunge After Export Ban Lifted
17 May 2024, New Delhi: India’s recent decision to lift its export ban on onions has had an unexpected impact on the domestic market. While the move was expected to boost export demand, the reality has been quite different.
The cost of Indian onions has now surpassed that of Pakistan’s, leading to a decline in international sales interest. This shift has resulted in a significant drop in domestic onion prices within India, falling by more than 15% in the past week. Exporters predict that it may take another 15 days before demand starts to recover.
According to an exporter from Nashik, the sudden lift of the export ban caught many by surprise, especially buyers from key markets such as Malaysia, Sri Lanka, the UK, and the UAE, who had turned to Pakistan for their onion supplies during the ban period. The reintroduction of Indian onions to the global market led to a drastic 50% price reduction in a short span. In response, the Indian government established a minimum export price of USD 550 per ton and applied a 40% export duty, making Indian onions considerably more expensive than those from Pakistan.
The price disparity has created a challenging environment for securing export orders, as the Nashik exporter explains. The recent policy changes have temporarily disrupted the global onion market, with expectations that it may take some time for the demand and pricing to normalize.
(For Latest Agriculture News & Updates, follow Krishak Jagat on Google News)
