India to allow onion export to Bangladesh on limited scale

India has decided to allow exports of onions through government-to-government route to Bangladesh and five other countries on the recommendation of its external affairs ministry, the Economic Times reported today.

One of the persons familiar with the matter said a limited quantity of onion exports has been allowed for bilateral purposes even though no decision has been taken on lifting a complete ban on onion exports, the daily said.

Details of the quantum to be allowed to be exported could not be ascertained, it added.

The five other countries to which export has been permitted are Nepal, Bhutan, Bahrain and Mauritius.

The Bangladesh government has written a formal letter to India to allow certain quantities of sugar and onion in order to bring down their prices in the domestic market during the holy month of Ramadan.

The world's second largest onion exporter, India banned the overseas shipment of the kitchen essential in December 2023 and later extended it till March this year to contain its rising prices and ensure adequate availability in domestic markets ahead of coming national elections.

India had first imposed 40 percent duty on onions to discourage its export but when that step did not yield the desired result, it clamped the ban.

A team of Indian government officials visited the main onion-growing areas of western state of Maharashtra earlier this month before making a recommendation on the continuance of the export ban.