• Saturday, Oct 19, 2019
  • Last Update : 03:34 pm

India bans onion exports with immediate effect

  • Published at 04:30 pm September 29th, 2019
Onions
Photo: Mahmud Hossain Opu

The ban will be in place until further orders, the country’s Ministry of Commerce and Industry said

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.

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.

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.