B'desh exempted from onion export ban

India has decided to exempt Bangladesh, one of its close allies, from the onion export ban and ship 50,000 tonnes of the produce ahead of Eid, said three senior officials aware of the development.

- Puja Das

As an exception, the Indian government has also allowed onion exports to three other countries: Mauritius (1,200 tonnes), Bahrain (3,000 tonnes), and Bhutan (560 tonnes), with immediate effect.

India had banned exports of onion in December after a 40% export duty and a floor price of $800 per tonne failed to lower domestic prices.

This coincides with Bangladesh's Prime Minister Sheikh Hasina taking office for fifth-term in January.

"We have allowed exports of 50,000 tonnes of onions to Bangladesh. Shipments will be undertaken by private trade until 31 March and the modalities are being worked out," Rohit Kumar Singh, consumer affairs secretary, told Mint.