India: Ban on onion exports replaced by minimum export prices

Measure #2005 | Published 23 Dec 2010 ▲

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?

Implementing Jurisdiction:

Affected Trading Partners:


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Measure type:

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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:

Glossary of trade terms