Onion Export Ban Dispute at WTO

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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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