Centre bans export of onions with immediate effect

New Delhi: In a bid to bridge the gap of demand and supply of the vegetable in the domestic market, the Centre on Monday banned the export of all varieties of onions including 'Bangalore Rose' and 'Krishnapuram' onions. However, the ban will not apply on onions in cut, sliced, or powder form. "The export of all varieties of onions... is prohibited, with immediate effect," the Directorate General of Foreign Trade (DGFT) said in a notification in this regard.

The decision comes at a time when the market is witnessing a spike in the onion prices due to a shortage of supply.

"Rates have increased and there is a shortage of onion in the domestic market. While this shortage is seasonal, a huge amount of exports were done in the last few months during the Covid-19 pandemic," said an official aware of the development. According to traders, heavy rains and flooding in the Nasik region of Maharashtra have affected the supply of onions.

Earlier in March this year, the government had lifted about a six-month-old ban on the export of onions after a correction in prices and improvement in local supplies. The DGFT which deals with exports and imports-related had announced removing the minimum export price (MEP) for outward shipments of the commodity from March 15.

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