Government’s ban on Onion export may affect farmers

New Delhi:  With an increase in onion prices in the country, the central government has banned its export, which is expected to bring the prices of the staple down. Only those onions cut, sliced or broken in powder form would be exported. Onion exports from the country had increased considerably during the corona virus pandemic, due to which domestic prices increased and supply decreased within the country.

The ban includes Bangalore rose onions and Krishnapuram onions.

Market experts also say that Onion exports from April to July 2020 went up by nearly 30 per cent compared with the previous year. Onion prices may witness another hike as heavy rains across south India have damaged standing onion crop.

The move was apparently aimed at increasing domestic supply and reducing prices which have risen in the recent past to ₹35 to 40 in Delhi.

In a notification, the Ministry of Commerce and Industry stated, “In exercise of the power conferred by Section 3 of the Foreign Trade (Development and Regulation) Act, 1992, as amended, read with para 1.02 and 2.01 of the Foreign Trade Policy, 2015-20, the Central Government hereby makes the following amendment in the Export policy of the onions. 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, with immediate effect.”

“The export of all varieties of onions as described is prohibited, with immediate effect. The provisions under Transitional Arrangement (Para 1.05 of the FTP 2015-20) shall not be applicable under this notification,” the notification read.

However, this ban may affect India’s share internationally

Danish Shah of JMC exports said that the government should have restricted export of onion. Such market intervenrtion market. India’s share has already come down to 40 per cewnt from 80 per cent.  He further said that a six month ban on Onion export had ended a few months ago. If such practices continue, the international market will not rely on india. The ban may affect the farmers the most, reports The Indian Express.

At present, the retail price of onions is above Rs 40 per kg in Delhi and neighboring areas. On Monday (14 September), onion prices at the Azadpur wholesale market ranged from Rs 13.75 to Rs 27.5 per kg.

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