The Government of India has lifted the export ban on onions to Sri Lanka, according to the Indian High Commission in Colombo.

It said that the export of onions has been permitted to Sri Lanka, with the export of up to 10,000 metric tonnes (MT) of onions permitted vide the notification of India’s Directorate General of Foreign Trade. The exemption for Sri Lanka reiterated India’s neighbourhood first policy, in the context of the Sinhala and Tamil New Year festivities here, the High Commission said in a statement on Monday (15).

Last month (March), India extended its ban on onion exports indefinitely in a move that had exacerbated high prices in some overseas markets. Imposed by India, the world’s biggest exporter of the vegetable, in December of last year (2023), the ban was due to expire on 31 March. Countries such as Sri Lanka, Bangladesh, Malaysia, Nepal and the United Arab Emirates (UAE) rely on imports from India to fill domestic gaps in the onion supply and many of those nations have struggled with high prices since the ban. 

However, it was reported last week that India was planning to supply thousands of MT of onion to Sri Lanka and the UAE after supplying vast quantities of essential commodities to the Maldives. India, on 3 April, allowed a supply of 10,000 additional tonnes of onions over and above its quota to close ally UAE as the Gulf country is always a priority with New Delhi. Traders estimate that India accounts for more than half of all onion imports by Asian countries. India exported a record 2.5 million MT of onions in the financial year that ended on 31 March 2023.