A Teary Tale of Onion Exports

Onions are a very important crop for both Indian farmers and consumers. Whenever there are price fluctuations in the market, the Government changes the rules on the trade of onions. In 2020 alone, the trading status of onions was changed 7 times, i.e. the government would ban the exports of onions and then relax it. This distorts the market and disincentivises investments in trade infrastructure like warehousing.