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Onion Export Ban Dispute at WTO

  • IASbaba
  • July 12, 2021
  • 0
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Onion Export Ban Dispute at WTO

Part of: GS Prelims and GS – II -International relations

In news USA and Japan have dragged India to the World Trade Organisation over the frequent ban it imposes on onion Exports.

  • Both countries have alleged that the export Ban without prior notice create problems for importing countries. 
  • Also, onion growers in India demanded that the centre draft a comprehensive policy on the import and export of onion instead of taking Ad Hoc decisions. 

Need for a comprehensive policy on onion 

  • To curb demand supply mismatch in the domestic market to aid exports 
  • Onion growers have suffered heavy losses due to the erratic ban on onion exports 
  • Ban on onion exports is becoming irritant in the bilateral trade relationship with countries like Bangladesh 
  • Pakistan has started competing with Indian onions share in the Gulf market in the last couple of years 

Do You Know?

  • India is second largest onion producing country after China
  • In FY21, India exported $378 million worth of onions, 15% higher than the previous year 
  • The top exporting destinations were Bangladesh Malaysia, UAE and Sri Lanka

Indian Government initiatives for onion exports

  • Merchandise export incentive scheme to promote exports during surplus onion harvest
  • Operation Greens to maintain the supply – demand match and price fluctuation of onion 
  • Also, low cost onion storage structures are built with 50% subsidy to farmers under the mission integrated development of horticulture (MIDH)

News source: TH Businessline

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