The government has banned exports and imposed countrywide stock limits on onion with immediate effect, This move is aimed at bringing down prices of Onions.
In recent times Onion prices had reached about ₹80 a kg due to supply disruptions after floods in some states.
Acting swiftly on a letter from consumer affairs secretary A.K. Srivastava earlier on Sunday to director general of foreign trade Alok Chaturvedi, the commerce ministry notified a ban on onion exports. Srivastava had written “With a view to improve domestic availability and control prices, may I request you to consider banning export of onions immediately,” Srivastava wrote.
“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 government,” a government official said on condition of anonymity.
The consumer affairs ministry imposed stock limits on onion traders to facilitate release of stocks in the market and prevent hoarding. For retail traders, the stock limit is 100 quintals and for wholesale traders, it is 500 quintals.
“Till now, the state governments have been implementing the stock limit as per circumstances. For the first time, the Centre has simultaneously imposed stock limits across the country. At the same time, state governments have been directed to take strict action against hoarders. Soon, onion prices will come down in the market,” tweeted food and consumer affairs minister Ram Vilas Paswan.