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India lifts ban on export of dehydrated onions to Sri Lanka, Maldives, and Southeast Asia

BY S VENKAT NARAYAN
Our Special Correspondent
NEW DELHI:
India is to lift the ban on export of dehydrated onions of all varieties in cut, sliced or broken in powder form to Sri Lanka and other countries.
In a letter to the Directorate General of Foreign Trade (DGFT), the federal Consumer Affairs Ministry has also recommended allowing export of 10,000 tonnes each of two special quality onions: Bangalore Rose and Krishnapuram onions.
Sources said the ministry has also recommended allowing monthly export of 150 tonnes of onions to Bhutan for the next three months.
Almost all quantities of Bangalore Rose onion are meant only for export to Southeast Asian countries. Similarly, Krishnapuram onions are not used in Indian kitchens due to their size and pungency. They are imported by Sri Lanka, Thailand, Hong Kong, Malaysia, and Singapore.
The consumer affairs ministry has recommended that these two varieties of onions should be allowed for export in consultation with the state horticulture departments. The export will be done through Chennai port following the same procedure adopted in 2019.
On the export of onion to Maldives, the ministry has suggested that the quantity that has been exported may be deducted from the annual quota and should be divided into equal monthly quota for the remaining months of 2020-21. Sources said this export can be done only from Tuticorin port as it was done for last year.
Asked why the government had to put a ban on export of onions, a source said there was an exponential increase in the export of onions. This led to reduced supply in the domestic market, which resulted in artificial shortage and price rise.