Government bans export of all varieties of onions with immediate effect

With the rise of wholesale prices of onion, the Union Government banned the export of all varieties of onions with immediate effect except those cut, sliced or in powder form. The move is aimed at increasing availability and checking the price of the commodity in the domestic market.

Directorate General of Foreign Trade said in a notification that the export of all varieties of onions is prohibited with immediate effect. The ban includes Bangalore rose onions and Krishnapuram onions.

The provisions under the Transitional Agreement shall not be applicable under this notification. The DGFT, under the Commerce Ministry, deals with exports and imports-related issues.

The ban comes at a time when the government is set to bring laws in the Parliament that removes all stockholding and movement restrictions on farm produce.

The key cooking ingredient as exports shot up 30 per cent in the April-July period. India has exported fresh onion worth $328 million and dried onions worth $112.3 million in FY20.

Similar, the ban on exports of onions was slapped last year on September 29, 2019. At the same time, the government also imposed countrywide stocks limits to bring down its prices, which crossed the mark of Rs 160/kg in certain parts of the country. The lift was lifted on March 15, 2020.