Business

Government Bans Export of Onions with Immediate Effect, Hopes to Curb Price Rise

 

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 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.

 

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