India allows export of onions to Bangladesh

India has allowed exports of onions on a government-to-government basis to some countries including Bangladesh, on the recommendation of India's External Affairs Ministry, according to a report published in the Economic Times on Monday.

One of the persons aware of the matter said a limited quantity of onion exports has been allowed for bilateral purposes though no decision has been taken on lifting a complete ban on onion exports. Details of the exporting agency could not be ascertained.

Another person said the Indian government has permitted exports of onions in limited quantities to Bangladesh, Sri Lanka, Mauritius, Bahrain, Bhutan and Nepal, among others.

India, the world's second-largest onion exporter, banned shipments of the kitchen staple from December 2023 till March 2024 due to rising domestic prices and potential shortages.

This led to a surge in onion prices in neighboring countries including Bangladesh.