NEW DELHI : The Central government on Monday prohibited the export of all varieties of onion except those cut, sliced or broken in powder form amid a shortage in supply due to heavy rainfall and floods.
“The export of all varieties of onion…is prohibited with immediate effect," the Directorate General of Foreign Trade (DGFT) said in a notification. The ban also includes Bangalore rose onions and Krishnapuram onions.
“Onion prices have increased in recent past. There is a shortage in supply in the domestic market due to heavy rainfall and floods. But this shortage is seasonal, a government official said.
India exported $198 million of onions in the April-June period of FY21 and $440 million in the entire 2019-20.
The government had in March lifted nearly six-month-old ban on export of onions to help boost the income of farmers.
The government had in September last year banned the export of onion and imposed countrywide stock limits on onion to bring down prices of the key cooking ingredient that had soared ahead of state elections in Maharashtra and Haryana. The crackdown followed retail onion prices touching ₹80 a kg in Delhi due to supply disruptions after floods in some states. In December last year, the prices hit ₹160 per kg in certain parts of the country.