Government bans onion exports to control rising prices

Government bans onion exports to control rising prices

Agency News

To control the price hike, the government on Sunday banned exports of all varieties of the bulb vegetable (Onions) from the country with immediate effect.

In a notification issued, the Director General of foreign Trade said the export policy of onions is amended from "free to prohibited till further orders". The DGFT on September 13 had imposed a minimum export price (MEP) of $850 per tonne to curb its shipments and help bring down rising domestic prices.

Due to heavy rains in most onion growing regions of India during the current monsoon season, there was an acute shortage of onions in the market, pushing up prices.

Retail onion prices have skyrocketed to Rs. 60-80 per kg in Delhi and some other parts of the country due to supply disruption from flood-affected growing states like Maharashtra.

The Centre last month had also warned of strict action against hoarding of onion amid supply disruption due to floods in parts of major growing states - Maharashtra and Karnataka.