Onion exports banned temporarily
Commodity Online NEW DELHI: The government on Tuesday temporarily banned export of onion in attempts to ensure adequate onion available in the domestic market and check the spiraling prices.
NAFED, the prime agency that facilitate onion export, will not issue any fresh No Objection Certificates (NOC) permitting export for some time, said Alok Ranjan, NAFED managing director.
He suggested the temporary ban on onion export would continue until Oct. 15, but those shipments already having NOC would leave the shores of India. The shipments due from earlier NOC would expire by Oct. 8.
Ranjan told reporters that Kharif crops have started to arrive from Nasik and Karnataka, easing the prices. The prices would come down considerably once the crop began to arrive in full swing by mid-October.
Festival demands and news of unexpected rains affecting standing crops helped spiral onion prices in domestic market. Wholesale price of onion doubled in Delhi from Rs.1,450 a quintal last week to Rs.2,125-2,375 this week.
Retail market in Delhi and Mumbai sold onion Rs.25-30 a kilo, an increase of more than Rs.5 in a week. Some traders suspect the price hike is artificial.
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