The Indian government on Sunday banned the export of onions with immediate effect till further orders for what it says improving domestic availability. 

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 Indian central government, according to Press Information Bureau of India.

On September 13, the minimum export price of US$ 850 per metric tonne was imposed on onion export. 

“Though there was some reduction in export of onions thereafter, yet the exports were still continuing,” PIB said quoiting the Indian Ministry of Consumer Affairs, Food & Public Distribution.

The ban on onion export is expected to improve domestic availability and cool prices, said the Indian government.

In view of sustained high prices of onions in the market, the Indian central government took several steps to contain the prices namely, imposition of stock limits on traders, ban on exports.

It asked state governments to take strict measures to prevent hoarding by traders, including organising raids.

In a swift move, the central government imposed stock limits on onion traders to facilitate release of stocks in the market and prevention of hoarding by traders. 

In the past, the PIB said, Centre [the central government] had authorised the state governments to impose stock limits. 

This time, Centre has decided to impose stock limits directly upon the states across India, according to the PIB. 

The stock limit of 100 quintal on retail traders and 500 quintals on wholesale traders was imposed across the country today.

The central government asked the state governments to enforce the stock limits strictly and carry out anti-hoarding operations against the unscrupulous traders by organising raids, etc.

A central buffer of about 56,700 MT was built by the government through NAFED during Rabi 2019 season. 

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

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 Department of Consumer Affairs and/or NAFED.