Centre bans export of onion, imposes stock limit on traders to check price rise
Concerned over rising onion prices, the Centre on Sunday banned the export of the key kitchen staple and imposed a stock limit on traders to improve the domestic availability of the commodity and provide a relief to consumers.
Retailers can stock onion only up to 100 quintals and wholesale traders are allowed to keep up to 500 quintals, the Consumer Affairs Ministry said adding that the state governments have been directed to take stringent steps to prevent hoarding.
The reported export below minimum export price (MEP) to Bangladesh and Sri Lanka will be stopped immediately and strict action will be taken against violators, it added.
The move comes amid sharp increase in retail prices of onion since August despite the government’s several measures to boost the supply and contain price rise. Currently, retail onion prices are ruling at around Rs 60-80 per kg in the national capital and some other parts of the country due to supply disruption from flood-affected growing states like Maharasthra and Karnataka.
“In view of sustained high price of onion in the market, the central government today took several steps to contain its prices, namely imposition of stock limit on traders, ban on exports, and sate governments will take strict measures to prevent hoarding,” the Consumer Affairs Ministry said in a statement.