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