In an unexpected step ahead of a general election, India has extended its export restriction on onions indefinitely, which is expected to worsen the high costs in certain foreign markets.
The embargo, which was put in place in December by India, the largest exporter of vegetables worldwide, was set to end on March 31. Since local prices have more than halved since export limits were put in place and this season’s crop delivers fresh supplies, traders had assumed it would be repealed.
Given the declining pricing and increasing supply from the new season crop, the prolongation is unexpected and totally needless,” a Mumbai-based export company executive, who wished to remain anonymous, stated.
According to the executive, onion prices in some wholesale marketplaces in Maharashtra, which produces the most onions, have dropped from 4,500 rupees in December to 1,200 rupees ($14) per 100 kg.
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