The central government has imposed a ban on all onion exports for fear of price

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Onion exports rose by an unusual 30 per cent in April-July, pushing up market prices.

The central government has imposed a ban on all onion exports due to fears of price rise due to shortage of supply in the market. The decision was made on Monday.

Onion exports rose by an unusual 30 per cent in April-July, pushing up market prices.

According to the Directorate General of Foreign Trade under the central government, the export of onions was banned immediately despite the approval of free exports so far.

Incidentally, on September 29, 2019, the last time such a ban was imposed on onion exports. This instruction was implemented due to low yield at that time. In December of that year, the price of onion rose to Rs 80 per kg. Later, when the situation came under control, the Center lifted the ban in March 2020.

According to government estimates, India exported a total of 328 million worth of onions and 112 million worth of dried onions in the 2019-20 fiscal year. Of this, 157.7% onions were sent to neighboring Bangladesh.

In general, one of the most important ingredients in Indian cuisine is the very sensitive countrymen centered around the price of onion.

According to the central government released on Monday, the country’s retail inflation rose to 6.69% in August. According to the Consumer Price Index, food inflation eased to 9.05% last month. Nevertheless, overall food and beverage inflation rose to 8.3% in August.

According to Sunil Kumar Sinha, chief economist at India Ratings and Research, if retail inflation does not fall to at least 4.5% in September, it will surpass 6% in the next three quarters. To curb inflation, the central government is being forced to take a decision to ban onion exports.