Govt bans export of onion with immediate effect

"The export of all varieties of onion is prohibited with immediate effect," the Directorate General of Foreign Trade (DGFT) said in a notification

The government on Monday banned the export of all varieties of onion except those cut, sliced or broken in powder form, to increase availability of the commodity in the domestic market and contain rising prices. There is shortage of onion in the domestic market due to heavy rainfall and floods.

"The export of all varieties of onion is prohibited with immediate effect," the Directorate General of Foreign Trade (DGFT) said in a notification.

The ban also includes Bangalore rose onions and Krishnapuram onions, which were free for export till now.

The decision has been taken in wake of recent spike in onion prices due to a shortage of supply from the Nashik region. In the national capital, onion prices were ruling at around Rs 40 per kilogram.

Earlier in March this year, the government had lifted about six-month-old ban on export of onions after a correction in prices and improvement in local supplies. The DGFT, an arm of the commerce ministry, which deals with exports and imports-related had announced removing the minimum export price (MEP) for outward shipments of the commodity from March 15.

In September 2019, the government had imposed ban on onion exports and also levied an MEP of $850 per tonne to increase availability in the local market and contain soaring price which touched up to Rs 160 per kg in certain parts of the country.

In the financial year 2019-20, India exported $440 million of onions and $198 million during the April-June quarter of the current fiscal.

By Chitranjan Kumar

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