KATHMANDU, March 26 -- India has unexpectedly extended its indefinite ban on onion exports, contrary to traders' expectations. The Indian government, in light of the upcoming Lok Sabha elections, issued a notice prolonging the export ban until further notice.

Initially, the ban on onion exports was anticipated to be lifted by March 31, as per the previous notification. However, the recent extension has repercussions for countries like Nepal, Bangladesh, Malaysia, and Saudi Arabia, which rely on the Indian market for onion imports. If the export ban persists, it could lead to a drop in onion prices within India while affecting import-dependent markets elsewhere.

According to the Indian media, in some markets of India's Maharashtra, where...