In an effort to control soaring prices in the local market, India has prohibited the export of onions with immediate effect, reports local media.
Its commerce and industry ministry said in a statement on Sunday (Sept 29) that the ban will remain until further orders, reports The Economic Times.
“Export of all varieties of onions, as described above, is prohibited with immediate effect,” the ministry’s Directorate General of Foreign Trade said in the notification.
A fortnight ago, the government had set the minimum export price (MEP) of onion at $850 a tonne to curb its shipments and help bring down soaring prices in the domestic market due to floods in parts of major growing states of Maharashtra and Karnataka.
Bangladesh, Sri Lanka and UAE are the top three destinations for Indian onions.
The move comes in the wake of the rising onion prices that has led to public outcry.
"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, "India Today quoted a statement by the consumer affairs, food & public distribution ministry.
The government has also imposed stock limits on onion traders to facilitate release of stocks in the market and prevent hoarding by traders, according to the report.
There is a stock limit of 100 quintals on retail traders and 500 quintals on wholesale traders imposed across the country on Sunday.
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, says India Today.