(MENAFN) In a move aimed at alleviating soaring onion prices and meeting the demand of neighboring countries, India has taken steps to ease its export restrictions on the essential vegetable, with plans to supply thousands of metric tonnes to Sri Lanka and the United Arab Emirates (UAE).
This decision comes shortly after New Delhi approved limited exports of essential commodities to the Maldives, despite strained relations between the two nations amid growing Chinese influence in the region.
According to a report by The Hindustan Times on Monday, India is preparing to dispatch significant quantities of onions to Sri Lanka and the United Arab Emirates. The country has already provided 10,000 metric tonnes of onions, surpassing the agreed-upon cap of 14,400 tons. India, known as the world's largest exporter of onions, had imposed bans or restrictions on onion exports, along with other essential commodities such as rice, wheat flour, pulses, and sugar, since December of the previous year.
The export restrictions have led to a surge in onion prices in neighboring countries that heavily relied on Indian imports to meet their domestic demand. To address this issue, the Indian government recently initiated a "special quota" arrangement, allowing exports to countries like Bangladesh, Sri Lanka, Mauritius, Bahrain, and Bhutan.
In a significant development, India also announced the resumption of exports to the Maldives, including onions and various other essential items such as eggs, potatoes, rice, wheat flour, sugar, dal (processed pulses), stone aggregate, and river sand. This move, which commenced on April 1, is expected to continue throughout the 2024-25 financial year and will be exempt from any existing or future export restrictions or prohibitions.
The decision to relax export bans underscores India's commitment to supporting its neighboring countries during times of economic strain and food insecurity, while also navigating geopolitical dynamics in the region. As India extends a helping hand to its neighbors, it seeks to reinforce its role as a key player in regional stability and cooperation.
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