Govt is anticipating a shortfall in the key cooking ingredient as exports shot up 30% during April-July period
The government on Monday banned export of onions anticipating a shortfall in the key cooking ingredient as exports shot up 30% during April-July period.
In a notification, Directorate General of Foreign Trade (DGFT) said exports of all varieties of onions are prohibited with immediate effect. “The provisions under Transitional Agreement shall not be applicable under this notification,” it added.
India exported $328 million worth fresh onions and $112.3 million of dried onions in FY20. Exports of onions shot up 157.7% to Bangladesh during April-July period in FY21.
The ban comes at a time when wholesale and retail price of onion in August fell 34.5% and 4% respectively. In Delhi, retail price of onion stood at ₹40 per kg.
Restriction on onion exports has become an annual affair. Last year on 29 September, government had banned export of onions and imposed countrywide stock limits to bring down prices of onions that had soared ahead of state elections in Maharashtra and Haryana. The crackdown followed retail onion prices touching ₹80 a kg in Delhi due to supply disruptions after floods in some states. In December last year, the prices hit ₹160 per kg in certain parts of the country. Five months after the ban, government lifted the curbs starting 15 March this year as the shortage in onion supply due to excess rain and flood hitting the kharif crop passed with arrival of rabi crop.
Source – Livemint