Price Of Onions In Asia Soars As India Bans Onion Exports
Monday, October 7th, 2019 | 757 Views
Onions are a common ingredient in Asian dishes and are widely consumed across the region. However, extended heavy monsoon rainfall has flooded several states and farms which damaged crops and reduced harvest. With local prices jumping to 4,500 rupees (S$87.70) per 100 kg—the highest in six years, the Indian government has responded by imposing a ban on export of onions.
India is one of the largest exporters of onions globally. According to data from India’s Agricultural and Processed Food Products Export Development Authority, India exported 2.2 million tonnes of fresh onions in the 2018/19 fiscal year ended March 31. Hence, this shortage has impacted the market significantly and prices have doubled in some countries. Neighbouring countries like Bangladesh has turned to Myanmar, Egypt, Turkey and China for supplies in efforts to bring prices down. Even India has been importing onions from Egypt to calm prices.
“India could resume exports once prices drop, but it will take time,” said Ajit Shah, president of the Mumbai-based Onion Exporters’ Association. “Until India resumes exports, supplies will remain limited in Asia.”
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