India announces lifting ban on onion export from Jan 1

India tonight announced lifting of the ban on onion exports with effect from January 1.

"Central Government removes prohibition for the export of all varieties of onions with effect from 01.01.2021," the Commerce and Industry Ministry said in a one-line media statement.

"It has been decided by the Narendra Modi government to allow the export [of] onions from the country. This will give access to our agricultural products abroad and will also increase the income of farmers," Indian Commerce and Industry Minister Piyush Goyal tweeted.

In September, India had banned onion exports except those cut, sliced or broken in powder form, to increase availability of the commodity in the domestic market and contain the rising prices of the kitchen staple.

The sudden export ban had drawn protests from Indian onion farmers as well as countries like Bangladesh and Nepal which heavily depend on Indian onions, reports our New Delhi correspondent.

Heavy rainfall and floods in major growing states like Maharashtra, Karnataka and Andhra Pradesh had caused a shortage of supply of onions in markets across India, prompting the Indian government to prohibit export.

With onion prices starting to ease in the domestic market after the arrival of new crop, the government has now decided to remove the ban.