Countries object to India’s frequent onion bans

The US and Japan have objected to India’s frequent ban on onion exports without prior notifications, claiming that importing nations are left in a lurch at the World Trade Organization (WTO). Both the countries asked India why it has not opted for an export quota, which would allow a certain number of exports.  Onion cultivators from Maharashtra, in turn, are demanding that the Centre draft a comprehensive policy on the import and export of onion, instead of taking ad hoc decisions.

Industry members have pointed out that despite being the second-largest onion producing country, India lacks a formal 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,” Bharat Dighole, president of Maharashtra State Onion Growers Association, said. Further, countries such as Pakistan, Turkey and Egypt had gained a foothold in the international market because of India’s ad-hoc export policies. “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,” Ajit Shah, president of the Horticulture Produce Exporters Association (HPEA), said.