Keeping the increasing price of retail onion prices in mind which is to touch the the highest since September 2015, the Union Ministry of Commerce and Industry on Sunday banned the export of all varieties of onions with immediate effect.
"Export policy of onion is amended from free to prohibited till further orders. Hence, export of all varieties of onions is prohibited with immediate effect, reported News agency ANI quoting Union Ministry of Commerce and Industry.
Sitanshu Kar, Principal Spokesperson, Government of India, also tweeted saying, the Centre has prohibited "export of all varieties of onions with immediate effect."
Central government has imposed stock limits on onion traders to facilitate release of stocks in the market and prevention of hoarding by traders, News agency ANI reported.
The stock limit of 100 quintals on retail traders and 500 quintals on wholesale traders has been imposed across the country, today.
"The reported export below Minimum Export Price to Bangladesh and Sri Lanka will be immediately stopped and strict action will be initiated against those who are found to be violating this decision of the Central government," ANI reported quoting Ministry of Consumer Affairs, Food and Public Distribution.
The retail prices of onion, a key kitchen staple, shot up to Rs 70-80 per kg in Delhi and Mumbai in wake of excess monsoon rains in major growing states. In cities like Bengaluru and Chennai, onion is being sold for up to Rs 60 per kg.
The excess monsoon in key producer states like Karnataka, Maharashtra, Madhya Pradesh, Gujarat, Rajasthan, Uttar Pradesh, and Bihar, has not only burned a hole in common man's pocket but has also led to a shortfall in its supply.
Delhi Chief Minister Arvind Kejriwal on Saturday flagged off 70 mobile vans which will be selling onions at Rs 23.90 per kilogram in all the assembly constituencies in the city.
"Flagged off 70 mobile vans from the Delhi Secretariat that are being stationed in 70 Assembly constituencies for sale of onion at Rs 23.90 per kg. In addition, 400 fair price shops have also begun supply of affordable onion. We expect the market price of onion to reduce soon," Kejriwal tweeted.
On September 26, Union Minister Ram Vilas Paswan had asked the states to buy onions from Centre and asserted that their requirements would be fulfilled immidiately.
"To augment onions 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.