India’s government on Sunday prohibited the export of all varieties of onions with immediate effect in an effort to rein in prices of the vegetable, ANI reported. The ban will be in place until further orders, according to a notification issued by the country’s Ministry of Commerce and Industry.
First export restrictions and now ban.
— Rakesh PANDIT (@RakeshPandit) September 29, 2019
As per available information, prices will continue to remain high till October month. Post October, prices are expected to reduce again. #Maharashtra #Onion #India #Ban #Export #HighPrices #Monsoon #Dependency https://t.co/HiDU2sxtdS
A restriction on exports of a commodity encourages supply in India’s domestic market, thus typically making it cheaper. Prices of onions have risen in the country last few weeks as supply from states such as Maharashtra has been disrupted due to rain and subsequent floods.
#Government bans #onion exports with immediate effect
— IANS Tweets (@ians_india) September 29, 2019
Photo: IANS pic.twitter.com/4S3wgw0Zsq
Traders from Maharashtra claimed that sufficient stock of onions from the previous year’s crop exists, but transportation had been difficult due to incessant rain, NDTV reported earlier. They also claimed that the price rise was due to an anticipated fall in summer production.
Last week, India’s onion prices touched the highest levels in four years, according to Business Standard.
