The government bans exportation of onion with immediate effect.
A shortfall in the most popular and priced vegetable was anticipated by the Indian government as its exports shot up 30% during the months of April-July this year. Therefore they decided to ban the export of all varieties of onion immediately.
The step was taken by the Modi government in order to increase the domestic supply and reduce the prices which have been rising in Delhi to Rs 35 to 40 per kg.
It has been reported that the onions can however be exported in cut, sliced, or broken in powder form as the ban won't be applied if it is exported in these forms. The Directorate General of Foreign Trade notified that exports if all varieties of onions are prohibited and the provisions under the transitional agreement will not be applicable under the particular notification.
At Lasalgaon’s market in Nashik, the prices started rising since early May. Heavy rain in the month of August which destroyed the onion crop in the northern region of Karnataka has resulted in the recent increase in the prices.
It has also been reported that the rain caused a lot of damage to the onions stored in states of Gujarat and MP, Thus leaving Maharashtra as the only state with the availability of market-ready onion while the crunch continues until November when new crops hit the market.
Exports of onions shooting up to 158% in Bangladesh in the April-July period have also been reported.
The ban was also implemented last year on 29 September by the government and was imposed countrywide, limiting the stocks in order to bring down prices of onions which had been soaring up in the states Maharashtra and Haryana, which resulted in prices increasing up to 80rs per kg in Delhi due to the supply disruptions.
While in the month of December, the prices soared up to ₹160 per kg in certain areas of the country.
After the ban of exporting onions with immediate effect, the farmer leader says that the abrupt decision made by the government proves that they don't care about the farmer's interest and have no intention of protecting them from suffering financial losses. While some say that the government has cheated the farmer by taking such an immediate decision.
The reaction of people towards the government's abrupt decision.
Shetkari Sanghatana addresses the move as illegal and called for a road strike on Tuesday in the state of Maharashtra.