The Indian government has imposed a ban on onion exports. It is claimed in the Indian media that this decision has been made due to the rise in onion prices in the country’s market. The Indian government is also keeping an eye on ensuring that the price of onions does not have any adverse effects in view of the upcoming elections.
According to a report in the Hindustan Times, the assumption is that the increase in onion prices has been dramatic. The prices have increased so much that people are expressing their discontent in the market. People are starting to show their frustration by openly expressing their displeasure with the rising prices of onions. The government has taken this step after learning about this situation. This directive was issued on Saturday.
The price of onions, which was sold at Tk. 45 (Rupees) per kilogram just two days ago, has now skyrocketed. The price of onions has now reached Tk. 65 per kilogram. The price of onions has increased throughout the country. And this increase in the price of onions has created pressure on the public. A few days ago, onions were being sold in the market for 100-150 taka per kilogram. This was also noticed by the middle class.
It is mentioned in the report that a new decision has been taken regarding onion supply and pricing. Even the minimum export price for onions has been set at $800 per ton. This will be effective from October 29 to December 31. The Directorate General of Foreign Trade in India has issued a notification on this matter. On the other hand, in Maharashtra, Karnataka, Madhya Pradesh, and other states, onion cultivation is now starting to come into the market during the rainy season. However, there is a delay in the arrival of these onions. Therefore, it is believed that when onions from other states come into the market, the prices will decrease. Sellers think that when they receive the onions at the price they want, they can sell them at a higher price.
Furthermore, on Saturday, the Indian government decided to procure 2 million tons of onions. This is so that the government can sell onions at a lower price in cities where the prices have skyrocketed. So far, the information that has come to the hands of the Indian government is that the prices of onions have increased without restraint in 16 cities.
However, behind this ban on onion exports, there is the upcoming election process in five states. In addition, Lok Sabha elections are scheduled for next year. If the price of onions increases, it will have an impact across the country. Therefore, the Buyer Protection Office has directed NCCF and NAFED to buy more onions to meet the demand.
