Government bans export of onion amid shortage in domestic market
New Delhi | Jagran Business desk: In a bid to curb the spike in commodity prices in the domestic market, the government has banned the export of all varieties of onions except those cut, sliced or broken in powder. The government's move comes amid a shortage in supply due to excessive rainfall in southern states.
“The export of all varieties of onions... is prohibited with immediate effect,” the Directorate General of Foreign Trade (DGFT) said in a notification. The DGFT, an arm of the commerce ministry, deals with exports and imports-related issues.
“Rates have increased and there is a shortage of onion in the domestic market. While this shortage is seasonal, a huge amount of exports were done in the last few months during the Covid-19 pandemic,” said an official aware of the development.
Notably, India is the world's biggest exporter of onions Countries such as Bangladesh, Nepal, Malaysia and Sri Lanka largely rely on Indian exports.
India exported $198 million of onions in the April-June period of FY21 and $440 million in the entire 2019-20.
Wholesale prices in India's largest onion trading hub, Lasalgaon in the western state of Maharashtra, have nearly trebled in a month to 30,000 rupees per tonne.
Excessive rainfall in India's southern states of Karnataka and Andhra Pradesh has damaged summer-sown crop and delayed harvesting in other states, said Ajit Shah, president of the Mumbai-based Onion Exporters' Association.
The government had imposed ban on onions in September last year when the prices of the bulb had crossed Rs 150 per kg in some retail markets. The ban was lifted in March this year to help boost the income of farmers.
(With agency inputs)
Posted By: Rakesh Kumar Jha