Centre bans onion exports, imposes stock limit

TIL Desk/Business/New Delhi/ In a move to contain surging onion prices, the government on Sunday prohibited the export of all varieties of onions with immediate effect and imposed stock limits on onion traders.

“Export policy of onion for the item description at Serial Number 51 and 52 of Chapter 7 of Schedule 2 of ITC (HS) classification of Export and Import Items is amended from free to prohibited till further orders,” a Commerce Ministry notification said.

On September 13, 2019, the Minimum Export Price of $850 free on board (FOB) per metric tonne was imposed on export of onions. “Though there was some reduction in export of onions thereafter, yet the exports were still continuing.

The ban on export of onions is expected to improve domestic availability and cool prices,” a statement by the Ministry of Consumer Affairs, Food and Public Distribution said.