Government Confirms Extension of Onion Export Ban Until March 31

The prohibition on the export of onions will persist until its originally scheduled end date of March 31, as confirmed by a senior official on Tuesday. The government's decision aims to stabilize prices and maintain an adequate supply of onions within the country. This ban, initially imposed on December 8, 2023, remains in effect, clarified Consumer Affairs Secretary Rohit Kumar Singh in remarks to PTI. Singh emphasized that the government's foremost objective is to secure ample domestic onion availability at affordable rates for consumers.

Following reports suggesting the potential lifting of the export ban on onions, the modal wholesale prices experienced a significant surge of 40.62%, reaching Rs 1,800 per quintal on February 19 at Lasalgaon, the nation's largest wholesale onion market. 

This increase comes in contrast to the Rs 1,280 per quintal recorded on February 17. Sources indicate that despite expectations of a ban lift after March 31, particularly with general elections on the horizon, this scenario seems unlikely. Concerns arise due to anticipated lower rabi (winter) onion production, attributed to reduced area coverage, particularly in Maharashtra.

In the 2023 rabi season, onion production was estimated to be at 22.7 million tonnes. The Agriculture Ministry officials will assess the rabi onion coverage in key growing states of Maharsthra, Madhya Pradesh and Gujarat in the coming days.