Onion export ban extended beyond March 31

The central government on Friday indefinitely extended a ban on onion exports beyond an earlier last date of March 31. 

Now, exports of the kitchen staple will be restricted until further instructions, according to an official notification. 

The export will be "prohibited until further orders, according to the Directorate General of Foreign Trade (DGFT), responsible for formulating and implementing the foreign trade policy.

In December last year, the Centre imposed a ban on onion exports till March 31, 2024, to ensure sufficient supplies and fair retail prices in the domestic market, after the retail prices of the bulb soared to as high as Rs 70-80 per kilogram.

Onion price today

Wholesale onion prices averaged around Rs 18 per kilogram on Saturday, March 23, with local prices ranging between Rs 7 and Rs 30 per kilogram in different parts of the country.

Inflation

Meanwhile, food inflation in the country worsened to 8.66 per cent in February from 8.30 per cent the previous month, as the overall consumer inflation reading stood little changed sequentially at 5.09 per cent, according to official data released last week. 

The food basket accounts for nearly half of the overall Consumer Price Index (CPI), which tracks changes in the prices of a set of goods and services. 

What is food inflation?

Food inflation refers to the rate of increase in prices of food items over a given period of time. It is a key economic indicator that affects consumers, producers, and policymakers alike.

Food inflation can be influenced by various factors such as weather conditions, supply chain disruptions, government policies, and global market trends.

Policymakers closely monitor food inflation as part of their efforts to maintain economic stability. They may implement measures such as subsidies, price controls, or trade policies to mitigate the impact of food inflation on consumers and businesses.

Prime Minister Narendra Modi is seeking a third straight term in upcoming 2024 Lok Sabha elections that will be held from April 19. Bangladesh, Malaysia, Nepal and the UAE are among the countries that rely on imports from India to fill their respective domestic gaps in onion supply.