Onion ban

Before the ban, onions were subject to a minimum export price (MEP) - This price may be higher than international prices, making international buyers unlikely to purchase. Another tool at the disposal of governments is stocking limits under the Essential Commodities Act. these actions, driven by rising food prices and inflation concerns, reflect a knee-jerk approach. Between 2015 and 2020, restrictions on onion trade cost farmers 20 percent of their income.

Around 30 percent of onion crops go to waste post-harvest due to low-quality warehousing.

In the 1980s, New Zealand underwent a substantial transformation: from a heavily regulated and subsidized agriculture system to a dynamic, consumer-centric approach. In the face of economic challenges, New Zealand liberalised the agriculture sector in 1984, allowing farmers to respond directly to consumer demands. The transition involved shedding protectionist measures, which increased productivity, efficiency, and income. In 1991, India liberalised its manufacturing and service sectors, which have since flourished. The agriculture sector was left untouched and, as a result, has steadily generated low profits despite over half of the country’s total workforce being engaged in agriculture

The Foreign Trade (Development and Regulation) Act of 1992 authorises the Indian government to regulate trade policies, including the export and import of goods. To import/export, a licence and an importer-exporter code number from the Directorate General of Foreign Trade must be obtained first. Section 3 of the Act grants the Union government complete authority to regulate the export of goods, including agricultural products. The executive has complete discretion to modify trade policies and is insulated from judicial scrutiny.

Agriculture Export Policy 2018 states policy uncertainty and frequent interventions as key reasons for hindering the development of stable trade relations. this policy is not in effect.