Currently, the export of onion is banned. However, the government allows shipments to India s friendly nations. It has permitted a specified quantity of onion exports to UAE and Bangladesh.
Veteran trade insiders say the reason why exports are still continuing in high volumes is under invoicing of onion prices by exporters, as that allows them to pay lower duty.
Onion: To prevent under-invoicing in export of basmati rice, the government had imposed a floor price of $1,200 per tonne. However, as the exporters claimed that an insignificant quantity of basmati rice is priced above $1,200, the government had to reduce the floor price.