Centre imposes ban on export of all varieties of onions with immediate effect

The Indian government on Monday banned the export of all onion varieties, a move which is aimed to curb prices of the commodity in the domestic market and increase its availability.

"The export of all varieties of onions is prohibited with immediate effect," the Directorate General of Foreign Trade (DGFT) said in a notification.

India is the world's biggest exporter of onions, a staple of South Asian cooking. Maharashtra, Karnataka, Madhya Pradesh, Bihar, and Gujarat are major onion producing states.

Countries such as Bangladesh, Nepal, Malaysia, and Sri Lanka rely on Indian shipments.

Excessive rainfall in India's southern states of Karnataka and Andhra Pradesh has damaged summer-sown crop and delayed harvesting in other states, said Ajit Shah, president of the Mumbai-based Onion Exporters' Association.

It may be noted that 40% of the country's total onion crop is produced in the Kharif season and the rest during the rabi season. The Kharif crop, however, cannot be stored.

In Delhi, onion prices were ruling at around Rs 40 per kilogram. Wholesale price inflation for onion stood at (-) 34.48% in August.

Wholesale prices in India's largest onion trading hub, Lasalgaon in the western state of Maharashtra, have nearly trebled in a month to 30,000 rupees per tonne.

(With agency inputs)