Sep 16, 2020
From Delhi it is been reported that the Union Government just recently banned exporting of any kind of onions with immediate effect. This move is to aim at increasing availability and checking price of the commodity within the domestic market for local consumers.
“The export of all varieties of onions is prohibited with immediate effect,” the Directorate General of Foreign Trade (DGFT) said in a notification. The DGFT is an arm of the commerce ministry that deals with exports and handle all imports-related issues.
The ban also includes rose onions of Bangalore and Krishnapuram variety of onions. The decision has been made at a time when the prices of onions in domestic retail markets are soaring due to a shortage of supply due to spoilage by heavy rains.
UAE, Sri Lanka, Bangladesh and Malaysia are the top importers of onions from India. The provisions under transitional arrangement shall not be applicable under this notification.
Bihar, Madhya Pradesh, Maharashtra, Karnataka, and Gujarat are major states where onion is produced in abundance and 40 per cent of the country’s total onion crop is produced in the Kharif season and the rest during the Rabi season. However, the Kharif crop cannot be stored.
Back in Sept 2019, the Indian government had similarly banned the export of onions to bring down onion prices due to disruptions in onion supply after flooding area in some states. The Government lifted the curbs after almost five months in March 2020 after the arrival of the Rabi crop made up for the shortage in onion supply caused by the flood-hit Kharif crop.