Government bans export of all varieties of onions amid rising prices

In a bid to control the soaring prices of the Indian kitchen staple, the government on Sunday banned the export of onions with "immediate effect" until further orders, a Ministry of Commerce & Industry statement said.

The move comes in the wake of the rising onion prices that has led to public outcry.

"Export policy of onion for the item description at Serial Number 51 & 52 of Chapter 7 of Schedule 2 of ITC (HS) classification of Export & Import Items is amended from free to prohibited till further orders." The Ministry of Commerce & Industry further stated.

The government has also imposed stock limits on onion traders to facilitate release of stocks in the market and prevent hoarding by traders.

There is a stock limit of 100 quintals on retail traders and 500 quintals on wholesale traders imposed across the country on Sunday.

The surge in onion prices is said to be due to a depleted supply following months of incessant rainfall and flood-like situation in onion-producing states in the country.

Last week, retail prices of onion continued to remain high at Rs 70-80 per kg in the national capital Delhi and other parts of the country, despite government measures to boost the supply of onions.

As per data maintained by the consumer affairs ministry, retail onion price was ruling at Rs 60/kg in cities like Delhi, Mumbai and Lucknow last week. It was being sold at Rs 58/kg in Mumbai and Rs 42/kg in Chennai. In Kanpur, onion prices were at Rs 70/kg and at Rs 80/kg in Port Blair.

To curb the prevailing situation, Delhi Chief Minister Arvind Kejriwal on Friday had announced that his government will be providing onions at Rs 23.90/kg in the national capital. The Aam Aadmi Party supremo flagged off mobile vans on Saturday to supply onions at the promised rate to the Delhiites.

On September 26, Union Minister Ram Vilas Paswan, in a bid to contain the onion crisis, had asked the states to buy onions from Centre and asserted that their requirements would be fulfilled immediately.

"To augment onion supplies to the markets, a team of two joint secretary-level officers have been sent to Maharashtra to talk to the farmers, traders and transporters to assess the availability of onions and to persuade them to bring more onions to the market," Paswan said in a series of tweets.