The US and Japan have raised inquiries on India’s frequent ban on onion exports at the World Trade Organization (WTO), claiming that such prohibitions without having prior notification place importing nations in a hard position. This, in turn, has resulted in Maharashtra onion growers demanding that the Centre draft a complete policy on the import and export of onion, rather of taking ad hoc choices.
Both US and Japan have asked India to clarify its actions and give causes why it has not opted for an export quota, which would let a specific quantity of exports. At the meeting of WTO’s committee on agriculture last month each nations stated India was requested to clarify its onion exports prohibition. The sudden export ban had also drawn protests from onion farmers as properly as neighbouring nations such as Bangladesh and Nepal that also rely heavily on Indian onions.
Bangladesh Prime Minister Sheikh Hasina raised this challenge at a organization forum meeting in Delhi. The minutes of the WTO meeting on agriculture held in June consists of facts of the inquiries posed by Japan exactly where India was requested to clarify export prohibition on all varieties of onion and why the notification was not made ahead of the measure was taken. India was also asked to clarify how the nation has provided due consideration to the effects of the measure on importing member’s meals safety
In September, the government banned exports of all varieties of onions, anticipating a shortfall as exports shot up 30% in the April-July period. In October 2020, the commerce ministry partially eased the curbs, enabling exports of Bangalore rose onions and Krishnapuram onions up to 10,000 tonnes each and every with quick impact. From 1 January 2021, the government lifted all restrictions on onion exports as rates beginning to ease in the domestic market place right after the arrival of the new crop.
In FY20, India even imported onions worth $80 million from Afghanistan, Turkey and Egypt to cool rates. In FY21, India exported $378 million worth of onions, 15% greater than the preceding year. The prime exporting destinations have been Bangladesh ($101 million), Malaysia ($62 million), the United Arab Emirates ($44 million) and Sri Lanka ($42 million).
Bharat Dighole, president of Maharashtra State Onion Growers Association, pointed out that despite the fact that India was the second-biggest onion generating nation, there was no concrete onion export policy. “Onion growers have suffered heavy losses due to the government’s erratic ban on onion exports. Now with the issue raised in WTO, the central government must decide on a concrete export and import policy,” he stated supporting the demand made by the US and Japan India ought to opt for an export quota which would continue the export of the bulb crop.
Ajit Shah, president of the Horticulture Produce Exporters Association (HPEA), stated that nations such as Pakistan, Turkey and Egypt had gained a foothold in the international market place mainly because of India’s ad-hoc export policies. There has been no export of onions from September 2020 to January this year and the government has banned exports at least 4–6-instances in the last couple of years, he stated.
“In the past buyers never stopped to check international prices because India’s prices were considered a benchmark the world over. But now, buyers have started checking prices with other exporting nations as well. India has lost its foothold in the international market,” Shah stated. The 4-month ban on shipments, coupled with the decline in demand due to the pandemic, has also lowered India’s onion export income to its lowest level in six years in the course of the 2020-21 fiscal year. Last year’s sales volume recovered from the preceding year, recording 14% development, but exports earnings fell by about 9% to Rs 2,107 crore from a higher of Rs 4,651 crore in 2016-17.