By Colombo traders have announced that further shortages and price hikes on onion is to be expected. India the main supplier of Onion has extended its ban on onion exports indefinitely.
Indi is the world’s biggest exporter of Onion. The Indian government has said that the ban will remain in place until further notice.
Some Indian Onion exporters argue that the ban is absurd and irrational.
“The extension is surprising and completely unnecessary, considering the falling prices with rising supplies from the new season crop,” said an executive at a Mumbai-based export firm, who declined to be identified.
Onion prices in some wholesale markets in Maharashtra, the biggest onion-producing state, have fallen to 1,200 rupees ($14) per 100 kg from 4,500 rupees in December, the executive said.
Traders estimate that India, which has shorter shipment times than rivals such as China or Egypt for many markets, accounts for more than half of all onion imports by Asian countries.India exported a record 2.5 million metric tons of onions in the financial year that ended on March 31, 2023.
Sri Lanka imported over 2.7 lakh tonnes of Onion from India in 2022-23.
