Centre bans onion export to control domestic prices

The Center has decided to ban exports of onions to keep its price in control.

During the pandemic onion exports increased due to which domestic market prices had risen and supply within the country decreased.

At present, the retail price of onions is above Rs 40 per kg in Delhi and neighboring areas.  Onion prices at the Azadpur wholesale market ranged from Rs 13.75 to Rs 27.5 per kg.

Market experts say that onion exports from April to July 2020 went up by nearly 30 per cent compared with the previous year. Onion prices may witness another hike as heavy rains across south India have damaged standing onion crops.

According to a notification issued by the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry, the export of all varieties of onions has been banned with immediate effect. The notification said that provisions of transitional agreements would not apply under this notification.

Rajendra Sharma, General Secretary, Azadpur Mandi Potato Onion Merchant Association (POMA), said that the export ban was a good decision to put an end to increasing onion prices. Due to crop failure in south India, there is shortage of onion supplies and hence the Union government should focus on import as well, Sharma added..