India added onions to the nation’s expanding list of food staples slapped with sweeping export hindrances, as the government wants to contain domestic prices ahead of a national election in 2024. Overseas shipments of onions will be put to ban till March 31, although cargoes of vegetables that began loading prior to the notification can still be exported, the government said on Dec 8.
The ban follows government plans in August to release stockpiles of the staple to shield consumers from increasing costs. The onion ban comes a day after India hindered the usage of sugar cane juice to produce biofuels, a step where goal was at increasing its reserves of the sweetener, and follows restrictions on wheat and rice. The measures have spilled over into the global market, leading to threats to food supplies from Asia to Africa and raising several prices.
“An increase in food inflation has been the cause why government has to take many actions to shore up domestic food supply, both through the use of export bans and higher imports,” said Mr Rahul Bajoria, an economist at Barclays Plc. “This will likely be a feature till the national elections in the middle of 2024.” The Reserve Bank of India left its important policy rate unchanged on Dec 8, increasing concerns about higher food prices.