Govt bans export of onions, imposes stock limit on traders amid rising prices

In order to contain the rising onion prices across the country, the government on Sunday imposed stock limits on traders to facilitate the release of onion stocks in the market and to prevent its hoarding.

In view of the sustained high price of onions in the market, a stock limit of 100 quintals on retail traders and 500 quintals on wholesale traders has been imposed across the country.

Earlier, the Centre had authorised State governments to impose stock limits, but this time, the Centre has imposed the stock limits directly upon the States.

It has asked the State governments to enforce the stock limits "strictly" and carry out anti-hoarding operations against unscrupulous traders by orgsing raids.

The government has also banned the export of onions with immediate effect. The ban is expected to improve domestic availability and cool the prices.

Recently, on September 13, a Minimum Export Price of USD 850 Freight On Board (FOB) per metric ton was imposed on export of onions. Though there was some reduction in export of onions thereafter, the exports were still continuing.

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 Central government, read an official release.

A central buffer of about 56,700 million tonnes was built by the government through National Agriculture Co-operative Marketing Federation of India (NAFED) during the Rabi season this year.

This buffer stock is being utilised for supplies to Delhi at a rate of not more than Rs 23.90 per kilograms.

Haryana and Andhra Pradesh are also being supplied from the buffer. Other States have also been asked to utilise this buffer and indicate their demand for the same to the Department of Consumer Affairs and/or NAFED.

( With inputs from ANI )