Amidst a complete export ban on all types of onions, it is believed that India is now considering to resume the export of onion to Bangladesh and a few neighbouring countries by embracing the ‘neighbourhood first’ policy.
However, it is believed that the Centre is yet to make a decision but talks have begun on working out an arrangement.
The Indian government on 14th September banned the export of all types of onions due to shortage of supplies caused by heavy rains, after which Dhaka formally complained about the impact of the Ban on the Bangladeshi importers.
Amid the ban, a major spike in onion price was witnessed in Bangladesh which is a major importer of India’s onions. Thereafter, the foreign ministry in Dhaka formally complained to the Indian high commission through a note verbale or unsigned diplomatic correspondence, inform trusted sources.
Onion is a staple diet in Bangladesh, it imports a yearly average of more than 350,000 tonnes of onions from India. A day after the ban, the prices for the root vegetable jumped in Dhaka to 90 to 100 taka per kg from 60 takas.
India is the world’s biggest exporter of onions, a staple of South Asian cooking. Countries such as Bangladesh, Nepal, Malaysia and Sri Lanka rely on Indian shipments.
Wholesale prices in India’s largest onion trading hub, Lasalgaon in the western state of Maharashtra, have nearly trebled in a month to Rs 30,000 ($408.52) per tonne.
India’s key onion-producing states have received as much as 41% more rainfall than normal since the monsoon season began on June 1 which has damaged the crop and delayed its harvest in others.