The Indian High Commission in Colombo has announced the lifting of India's export ban on onions destined for Sri Lanka.
Under the directive issued by India’s Directorate General of Foreign Trade, the export of up to 10,000 metric tons of onions to Sri Lanka has been permitted.
This exemption, as reiterated by the High Commission, aligns with India's Neighbourhood First policy and coincides with the Sinhala and Tamil New Year festivities in Sri Lanka.
Previously, India's indefinite extension of the onion export ban, imposed in December, had led to increased prices in overseas markets. Nations such as Sri Lanka, Bangladesh, Malaysia, Nepal, and the United Arab Emirates heavily rely on Indian onion imports to meet domestic demand, resulting in challenges exacerbated by the ban.
However, recent reports indicate India's intention to supply thousands of metric tons of onions to Sri Lanka and the UAE, following substantial deliveries of essential commodities to the Maldives. In a gesture of solidarity with close ally UAE, India allowed an additional 10,000 tons of onions beyond its quota.
Traders estimate that India accounts for over half of all onion imports by Asian countries, with a record 2.5 million metric tons exported in the financial year ending March 31, 2023.
The lifting of the export ban signifies a positive step towards regional cooperation and alleviation of onion supply concerns in Sri Lanka.
