Business

India extends onion export ban indefinitely ahead of general election

India, a country that is huge in onion exports, extended the ban on onion exports with no expiry date to face their internal elections. This option is made to stop the constant flow of onions in the country and keep the prices from increasing. In previous elections onion prices have been the reason for major social turmoil.

The law allowed only simple onions like the red one, so scallions were smuggled in, and thus their prices were increased sharply. But in the run-up to the next general elections, the state leaders seem to have tilted towards a more active method of prohibiting the sale of onions to keep it off the ground of politics relating to the onion crisis.

In Indian cuisine, onions assume great significance and are an ingredient you can always find in many kitchens. Recent onion price rises have been the subject of strong public protests, and politicians openly criticize agri-supply chain businesses. The government strives to maintain a steady supply of onion to meet domestic demand and abate disruptions during the election period. The export ban would, in extension, be targeted.

Although the decision was meant to stabilize and ensure onions in Kenya do not become too expensive, it could now affect onion farmers who earn most of their income from exports to different countries. On the positive side, the administration has promised steps on the part of the government to cushion the effect on farmers during this critical period, which it admits with levity.

Politicians and candidates will closely supervise everything in the onion market from now until the general election because these market phenomena directly affect the sentiments of the people. Extending the export ban to overcome any impending challenges in the onion market is likely the government’s response as an attempt to keep the candidates’ attention away from food items.

The length of the restriction on onion exports is currently unknown, and the success in managing prices and availability is yet to be monitored. Government officials will still monitor the situation and respond promptly to safeguard the supply chain onion while taking care of both consumers and farmers.

With the ban as the pervasive force in the market, consumers in the whole country are likely to face a roller coaster of onion prices going up and down. Therefore, the government can enable itself to carry out the onion market succession efficiently while at the same time earning people’s trust and lowering the chances of the elections being unfair.

The seemingly endless extension of the export ban shows a sign that shares more in food and nutrition security and the fine balance between domestic and foreign trade. The government’s decision lays the groundwork for debates on agricultural policies and the problems held out by the farmers in the realm of internationalized markets. Continuing the elections, the indefinite ban on onion exports will still be a hot topic in the market, and it will be the agenda of many political discussions on the policies formulating matters, consumer welfare, and politics.

Source
REUTERS

HD News Desk

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