In efforts to mitigate the impact of heightened onion prices and cater to the demand from neighboring nations, India has embarked on a strategy to relax its export limitations on onions. The initiative aims to facilitate the shipment of substantial quantities to Sri Lanka and the United Arab Emirates (UAE). This development follows the authorization of restricted exports of essential goods to the Maldives, amidst tense bilateral relations influenced by China's growing regional presence.
Reports indicate that India is gearing up to supply notable amounts of onions to both Sri Lanka and the UAE, having already exceeded the previously set export ceiling with a delivery of 10,000 tons. Historically, India has been a dominant onion exporter but had imposed restrictions on the export of onions and other vital commodities since the previous December. The enforcement of such restrictions led to a spike in onion prices in countries dependent on Indian imports for their supply.
To alleviate these challenges, the Indian government introduced a "special quota" system, permitting onion exports to several countries, including Bangladesh, Sri Lanka, Mauritius, Bahrain, and Bhutan. Furthermore, India resumed exports to the Maldives, encompassing onions and other essential items, under a scheme exempt from future export bans, effective until the 2024-25 fiscal year.
Source: menafn.com