In a strategic move ahead of the 2024 Lok Sabha elections, the Central government has taken decisive action to curb inflation by banning the export of onions until March 2024. The Director General of Foreign Trade (DGFT) issued a notification on Thursday amending the export policy of onions from ‘Free’ to ‘Prohibited.’
Effective immediately, the ban is subject to three specific conditions allowing onion export. These include consignments where loading has commenced before the notification, cases where shipping bills are filed with vessels already berthed or anchored in Indian ports, and situations where consignments have been handed over to Customs or entered Customs Station for exportation before the notification.
The notification also specifies that the export period for onions under these conditions extends up to January 5, 2024. Additionally, export will be permitted based on the Indian government’s permission granted to other countries, responding to their specific requests.
The decision comes in response to the surging prices of onions, with the all-India daily average recorded at Rs 57.11 per kg on Thursday, reflecting a significant increase of 97.95% compared to the same period last year.
In a bid to further address economic concerns, the Centre has directed all sugar mills and distilleries to cease using sugar cane juice or sugar syrup for ethanol production in the ethanol supply year 2023-24 (November-December). This directive aims to ensure the availability and efficient utilization of resources amid economic considerations.
Earlier, the government had also imposed export restrictions on wheat and non-basmati white rice.
