Onions
Onions
Business & Economy

Centre bans export of onions, imposes stock limit on traders to contain prices

NetIndian News Network

New Delhi, September 29, 2019

The Union Government today banned the export of onions and imposed stock limits on traders as part of measures to contain the high prices of the commodity.
The Centre has also asked State Governments to take strict measures to prevent hoarding by traders, including organising raids, an official press release said.
According to it, the Centre has banned export of onions with immediate effect till further orders for improving domestic availability.  
Recently, on September 13, a Minimum Export Price of US$ 850 F.O.B. per metric ton 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," the release said.
The imposition of stock limits on onion traders is expected to facilitate release of stocks in the market and prevention of hoarding by traders.  In the past, Centre had authorised the State Governments to impose stock limits.  This time, Centre has decided to impose stock limits directly upon the States across India.  
"The stock limit of 100 quintal on retail traders and 500 quintals on wholesale traders has been imposed across the country today," it said.
The Centre has asked the State Governments to enforce the stock limits strictly and carry out anti-hoarding operations against the unscrupulous traders by organising raids, and such other measures.
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 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.
"The reported export below Minimum Export Price to Bangladesh & Sri Lanka will be immediately stopped and strict action will be initiated against those who are found to be violating this decision of the Central Government," the release added.
NNN

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