February 20: India has lifted the ban on onion export to six countries including Nepal.

The Government of India has set quota for the export of onion to the six countries. India decided to resume supply of onion to Nepal, Bangladesh, Sri Lanka, Bahrain, Bhutan and Mauritius.  

The Government of India has permitted the export of 300,000 metric tons of onions to these countries. The decision of the Indian government to lift the ban on onion exports has reopened the door for importing onions into Nepal. This is expected to lower the price of onion in the domestic market of Nepal.

Meanwhile, India media have warned that there will be a shortage of onion from upcoming March and the price of onion is likely to increase in India.

In an effort to curb the escalating price of onion domestically, the Government of India had imposed an export ban on onions in December 2023. Following the ban, onion prices in India experienced a decline. However, it had an adverse effect in Nepal. The price of onion increased to as high as Rs 150 per kg.

Secretary at the Ministry of Industry, Commerce and Supplies Gajendra Thakur informed New Business Age that India lifted the ban on export of onions because of the start of onion production season in India.

“With the decision of India to lift the export ban, we will be able to import onions from the open market of India,” said Thakur, adding, “ Although onion was being imported from India through various means even during the ban, the consumers were forced to pay a high price. Now, the price of onion is expected to drop.”