International trade is an extremely important component of the global economy

  • One such product has been hand sanitizers. It is seen as a major defence mechanism against the virus
  • The demand for hand sanitizers has shot up during the crisis. Countries such as India have become major players in the global market

However, the Indian government has also been cautious in terms of meeting the local demand first. This is because sanitizers are important in order to protect the virus from spreading

  • Due to this, India decided to ban the export of hand sanitizers during the month of March 2020
  • This decision was made to make sure that the local population has first access to these products
  • This decision to ban sanitizers has now been reversed, as manufacturing capabilities have increased and demand has stabilized

This blog discusses the key aspects of the ban on the export of hand sanitizers from India

Key Aspects of the Ban

There are numerous reasons why the Indian government decided to place a ban on the export of sanitizers

  • Firstly, it was extremely important for the local population to have access to sanitizers during the crisis
  • Hand sanitizers were considered as essential commodities due to their vital role in fighting against the virus
  • Further, the government also wanted to make sure that exporters are not putting profits ahead of the needs of the local population
  • Finally, another reason why this decision was made was because local bodies and state governments wanted a complete ban

Due to all of the above reasons, the government decided to ban the export of sanitizers for 100 days

  • This ban was enforced during the month of March 2020 and carried on until June
  • The ban had a major impact on Indian exporters, who had to alter their strategies and look at other products

In June 2020, the Indian government announced that the export ban was being lifted

  • This was due to the fact that local demand for the product had subsided
  • However, the ban was only relaxed for certain types of sanitizers
  • It was announced that hand sanitizers in containers with dispenser pumps or in any form of packaging would be allowed

The decision to remove the ban has been welcomed by exporters across the country

  • It has become much easier for Indian traders to export sanitizers to other parts of the world

Overall, the ban on sanitizers during the height of the crisis was important because it ensured that local demand was met first

  • Now that the ban has been removed, exporters can look to ramp up their trade once again

To conclude, it is clear that there are several reasons why the export of sanitizers was banned. However, the ban has been lifted now, and exporters can make full use of this opportunity. Institutions such as Euro Exim Bank offer customized support to traders in the form of financial instruments and bespoke trade advisory services. Euro Exim Bank offers financial instruments such as Bank Guarantees and Letters of Credit (LCs). Further information about Euro Exim Bank and its key product offerings is available here