India has banned the export of onions, one of the country’s most important kitchen ingredients. The ban was imposed by the government on the assumption that onion exports from India to other countries would increase by 30 percent during April-July. Heavy rains and floods in the Nashik region of Maharashtra have severely affected the onion supply.
The Directorate General of Foreign Trade said the export of all types of onions was banned. It also states that the terms under the Conversion Agreement do not apply under this Notification. India exports $ 328 million worth of regular onions and 112.3 million dried onions a year. This is for the current financial year only. India’s onion exports to Bangladesh increased by 158 per cent in April-May.
Government bans export of onions with immediate effect pic.twitter.com/BuAdFAGSpK
— ANI (@ANI) September 14, 2020
Wholesale and retail sales of onions in August fell by 35 percent and 4 percent, respectively. The retail price of onion in Delhi is Rs. At the same time, onion exports are a common occurrence every year. A similar ban was imposed in September last year. In Maharashtra and Haryana, the government banned exports ahead of last year’s state elections to reduce onion prices.
It was also decided to store onions across the country. It was hoped that this would reduce onion prices. At that time, the retail price of onion in Delhi had touched Rs 80 per kg due to disruption in supply due to floods in some states. In December, it had risen to Rs 160.
The ban was imposed five months later. The government onion supply has been low since March 15 this year. Heavy rains and floods have adversely affected the crop.
The Essential Commodities Act of 1955 was amended to limit and limit the stock of food grains, oilseeds, potatoes, onions and essential commodities. This was followed by a ban on onion exports. Such bans are usually imposed in cases of war or natural disaster.
The main reasons behind the ban on onion exports
It is said that there are two main reasons for the ban on onions. One of them is the sharp rise in the wholesale price of onions. This mainly affected the stocks in the city markets.
In June, the price of onion was Rs 25-30 per kg. The country has witnessed a sharp decline in headline-based inflation. Inflation is 6.69 per cent lower than last month’s 6.73. The Consumer Price Index (CFPI) for August was 9.05.