It is one of the most consumed foods in the world: the onion. For several months, India, one of the world’s largest producers and exporters, had put in place severe export restrictions. Objective: to control the surge in prices on the domestic market. Measures which have just been lifted.
In Indiathe media spoke of “ onion war “. New Delhi took everyone by surprise last December by prohibiting any export of the bulb, and this until at least April. This came after the imposition of a customs duty and then a floor price of $800 per tonne. Measures which had one objective: to lower the price of onions on Indian markets. Popular with the population, the bulb saw its price soar: 60 rupees per kilo last December, double the price of the previous year.
Untenable in full pre-election period for the Modi government, which is trying at all costs to contain inflation. Similar measures have also been put in place for rice, sugar and even cereals. Banned for export, the onion, like rice, has become a diplomatic tool for India. In recent months, certain countries have negotiated exceptional authorizations. This was the case of the United Arab Emirates, Sri Lanka or Bangladesh for example.
A political decision?
But after five months, the measure was lifted this Saturday. However, the government imposes a minimum export price of $550 per metric ton. A decision that seems political. The western state of Maharashtra is a very large producer of the bulb. And voting for the general election has not yet started there. However, for several months now, farmers and exporters have been calling for a lifting of the ban to obtain better prices.
Especially since onion producers should obtain good yields this year. An Indian official, cited by Reuters, says he expects good production in 2024, after a “ monsoon heavier than usual “.
