India: Ban on onion exports replaced by minimum export prices
Description
On 20 September 2011, the government of India removed its export ban on onions (notifcation 75/2010). The ban had only been implemented on 9 September 2011 (notification 73/2010).
Instead, the government has returned to the imposition of minimum export prices, the regime in operation prior to the ban. The export of non-processed onions are only allowed for prices exceeding $475 per ton.
The reported move is the latest in a series of governement interventions in onion exports. Only on 18 February 2011, the government of India had reallowed exports of onions subject to Minimum export prices (notification 24/2010). A ban on exports had been imposed in December 2010. The minimum export prices have been adjusted repeatedly since.
The initial minimum export prices had been $600/ton for regular onions and $1'400/ton for Bangalore rose onions (notification 24/2010). Both prices have been lowered and raised again repeatedly with $475/ton and $400/ton being the latest revisions (notification 70/ 2010, dated 7 September 2011).
Any Evidence-Based Deliberation:
| Question | Result |
|---|---|
| Is there anything in the public record to suggest that evidence of the effectiveness of the proposed measure was considered during official deliberations? | |
| Is there any evidence that alternatives to the proposed measure were considered? | |
| Is there anything in the public record that suggests that empirical evidence informed the comparison across the alternatives available to government? | |
| Was such evidence identified? | |
| Is such evidence publicly available? | |
| Did the official decision-maker in question provide an explanation as to why a chosen measure was favoured over alternatives? | |
| Is there any evidence to suggest that potentially affected trading partners were consulted before the measures were taken? | |
| Is there any evidence that safeguards have been put in place to ensure that implementation of the initiative is transparent and non-discriminatory? | |
| Did the government state its intention to review the measure within one year of implementation? |
Date Discovered: 21/12/2010
Implemented: Yes
Date of inception: 12 Aug 2011
GTA Evaluation: Amber
Source:
The cited notifications are available from http://dgft.gov.in/exim/2000/not/not10/indexn1011-ftp.htm
'NOC for Onion Exports Suspended', Press Release, Ministry of Agriculture, 20 December 2010.
http://pib.nic.in/newsite/erelease.aspx?relid=0, Release ID: 68595
'Govt cuts customs duty on onion imports to zero', The Times of India, 22 December 2010.
http://timesofindia.indiatimes.com/business/india-business/Govt-cuts-cus...
Government Response:
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