New Delhi: In a move to check skyrocketing onion prices and provide relief to consumers as well, the government on Sunday banned export of onions with immediate effect. It also imposed a stock limit on traders to improve the domestic availability of the commodity.
The development comes days after the prices of the basic kitchen staple skyrocketed across India. The retail prices of onions shot up to Rs 80 per kg in Delhi and Mumbai in the wake of excessive monsoon rains in major growing states like Mahara-shtra and Karnataka.
In Hyderabad, the onion price is around Rs 60 a kg.
On Sunday, the Director-ate General of Foreign Trade (DGFT) notified the ban on the export of onion. “The reported export below minimum export price (MEP) to Bangladesh and Sri Lanka will be stopped immediately and strict action will be taken against violators,” it said.
In August, the Central government had caution-ed retailers and wholesalers against hoarding onions amid supply disruption due to floods in parts of major growing states.
“Also, retailers can stock onions only up to 100 quintals and wholesale traders are allowed to keep up to 500 quintals. Besides, the state governments have been directed to take stringent steps to prevent hoarding,” the notification added.