The Central government on Sunday, 29 September, banned the export of onions to increase availability of the commodity in the domestic market and contain rising prices.
Stock limits have been imposed on onion traders to facilitate release of stocks in the market and prevention of hoarding by traders. For retail traders, the stock limit is of 100 quintals and for wholesale traders it is 500 quintals, PTI reported.
“The reported export below Minimum Export Price to Bangladesh and Sri Lanka will be immediately stopped and strict action will be initiated against those who are found to be violating this decision of the Central government,” Ministry of Consumer Affairs, Food & Public Distribution said.
“Export of all varieties of onions...is prohibited with immediate effect,” the Directorate General of Foreign Trade (DGFT), an arm of the commerce ministry which deals with exports and import related issues, said in a notification.
The DGFT on 13 September had imposed a minimum export price (MEP) of USD 850 per tonne to curb its shipments and help bring down rising domestic prices.
The MEP is the rate below which no exports are allowed.
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 Maharasthra.
Meanwhile, to give relief to consumers from high prices, the central government is offloading 50,000 tonnes of buffer stock of onion across the country.
(With inputs from PTI)
(At The Quint, we are answerable only to our audience. Play an active role in shaping our journalism by becoming a member. Because the truth is worth it.)