Onion Export Banned for 115 Days from 8 Dec 2023 to 31 March, 2024

· Transitional Clause Para 1.05 amended and only cargo under loading will be allowed where Shipping Bill is passed and ERO number issued with physical presence of Vessel

· India Bans Export of Onions till March 2024

· The notification banning the export of onions was issued on Thursday. The move is aimed at curbing inflation ahead of the Lok Sabha elections in 2024.

In a move to curb inflation ahead of the 2024 Lok Sabha elections, the Centre has banned the export of onions till March 2024.

The Director General of Foreign Trade (DGFT) issued a notification to this effect on Thursday. As per the notification, the export policy of onions has been amended from ‘Free’ to Prohibited.

While the ban comes into effect on Friday, the export of onions will be allowed on three conditions.

“Further, consignments of onions will be allowed to be exported on fulfilment of any one of the following three conditions: i. where loading of onions on the ship has commenced before this Notification; ii. where the shipping bill is filed and vessels have already berthed or arrived and anchored in Indian ports for loading of onion and their rotation number has been allocated before this Notification; The approval of loading in such vessels will be issued only after confirmation by the concerned Port Authorities regarding anchoring/berthing of the ship for loading of onions prior to the Notification; and iii. where consignments of onions has been handed over to the Customs before this Notification and is registered in their system / where consignments onions has entered the Customs Station for exportation before this Notification and is registered in the electronic systems of the concerned Custodian of the Customs Station with verifiable evidence of date and time stamping of these commodities having entered the Customs Station prior to issuance of this Notification. The period of export shall be up to 5th January, 2024,” reads the notification.

It further says, “Export of onions will also be allowed on the basis of permission granted by the Government of India to other countries based on the request of their Government.”

The all-India daily average price of onion was recorded at Rs 57.11 per kg on Thursday, which is 97.95 per cent higher as compared to a year ago.

On Thursday, the Centre asked all sugar mills and distilleries not to use sugar cane juice or sugar syrup for ethanol production with immediate effect in ethanol supply year (ESY) 2023-24 (November-December).

Earlier, the government had banned the export of wheat and non-basmati white rice.

[DGFT Notification No. 49/2023 dated 7 December, 2023]

Effect of this Notification: Export policy of onions under HS Code 0703 10 19 is amended from 'Free' to 'Prohibited, till 31.03.2024'.

Subject:- Amendment in export policy of Onions.

S.O. (E) In exercise of powers conferred by Section 3 read with section 5 of the Foreign Trade (Development & Regulation) Act, 1992 (No. 22 of 1992), as amended, read with Para 1.02 and 2.01 of the Foreign Trade Policy, 2023, the Central Government hereby amends the Export Policy of Onions in Chapter 07 of Schedule 2 of the ITC (HS) Export Policy, as under:

Tariff item HS Code	Unit	Item Description	Export Policy	Policy Condition	Revised Export Policy	Revised Policy Condition
0703 10 19	KG	Onions	Free	Subject to a Minimum Export Price (MEP) of US$ 800 F.O.B. per Metric Ton (MT), till 31^st December, 2023”	Prohibited till 31.03.2024	--

2. The Notification will come into effect from 08.12.2023. The provisions as under Para 1.05 of the Foreign Trade Policy, 2023 regarding transitional arrangement shall not be applicable under this Notification. Further, consignments of onions will be allowed to be exported on fulfillment of any one of the following three conditions:

i. where loading of onions on the ship has commenced before this Notification;

ii. where the shipping bill is filed and vessels have already berthed or arrived and anchored in Indian ports for loading of onion and their rotation number has been allocated before this Notification; The approval of loading in such vessels will be issued only after confirmation by the concerned Port Authorities regarding anchoring/berthing of the ship for loading of onions prior to the Notification; and

iii. where consignments of onions has been handed over to the Customs before this Notification and is registered in their system I where consignments onions has entered the Customs Station for exportation before this Notification and is registered in the electronic systems of the concerned Custodian of the Customs Station with verifiable evidence of date and time stamping of these commodities having entered the Customs Station prior to issuance of this Notification. The period of export shall be upto 5th January, 2024.

3. Export on onions will also be allowed on the basis of permission granted by the Government of India to other countries based on the request of their Government.

(Issued from File No. 01/91/171/50/Misc/AM21/e-26586)