New Delhi, Feb 19 (KNN) India has approved the export of onions on a government-to-government basis to specific countries, following recommendations from the Ministry of External Affairs.

A limited amount of onion exports has been authorised for bilateral purposes. However, a decision regarding the complete lifting of the onion export ban is still pending, according to sources cited by ET.

The government has reportedly permitted the export of onions in restricted quantities to nations such as Bangladesh, Sri Lanka, Mauritius, Bahrain, Bhutan, and Nepal.

As the world's second-largest onion exporter, India imposed a ban on the export of this kitchen staple from December 2023 to March 2024 due to surging domestic prices and potential shortages.

This export prohibition resulted in a spike in onion prices in neighbouring countries.

In August 2023, amidst escalating onion prices, the finance ministry imposed a 40 per cent export duty to discourage shipments.

However, this measure failed to achieve the desired effect due to under-invoicing. Consequently, the government established a minimum export price of USD 800 per tonne for onions starting from October 28.

(KNN Bureau)