Government Bans Onion Seeds Export – Price Surging!

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Government bans the export of onion seeds recently. There has been a huge appraisal of the price of onions available in the market. It seemed as if the price of onions had been skyrocketing each and every day. It was such that the exporters were required to fetch a permission or licence from the government in order to avail the shipments for onion which happened to be in the restricted category for the same. On Thursday, the government announced the ban on the exports of onion seeds with immediate effect.
onion seeds
The government announced, “The export of onion seeds is prohibited, with immediate effect.” There was a constant rise in the price of these onions in the domestic market over the past few times and the Directorate General of Foreign Trade clearly mentioned it in a recent notification. It further added that the provisions would not be applicable under the transitional arrangement.

Onion seeds exports restricted

The onion seed exports did worth a total of USD 0.57 million during the month of April-August this fiscal and against USD 3.5 million in the full 2019-20 fiscal. The DGFT did then the exports of onion in order to cut off the prices of the onions in India. Besides, the centre has also imposed a stock holding limit on the wholesale and retail traders until the month of December 31st in order to improve the availability of the commodity international market as well as to provide some sort of relief to the customers. The Consumer Affairs Secretary Leena Nandan had recently said in a press conference that the retail traders are eligible to stock onions up to two while the wholesale traders can keep up to 25 tonnes of onions in their inventory.

Onion prices seem to be skyrocketing

Onion prices did rise up sharply to approximately Rs 70 per kg in the past few weeks. The reason being cited behind this is none other than the damage to standing Kharif crops in different areas as the production has been interrupted due to heavy rainfall. Onions that used to be available at a price of just ₹ 20 earlier are now being sold in different cities in India at a high price of around ₹ 100, particularly in places like Delhi and Mumbai. The loss in production due to the damage of crops in North Karnataka and the traders’ protests are some of the reasons for which this price has risen so high!
What else can bother someone more than the availability of a staple vegetable at such a low price? Also, this Covid 19 pandemic is hitting the hotel and restaurants industry as well. It seems that if the price keeps on surging in the next few months, the hotels and restaurants will have to revise their rates of offerings too! The early-kharif onion crop was sown in states like Andhra Pradesh and Karnataka. The crops were damaged due to incessant rains. Besides, the growth of onion is in parts of Madhya Pradesh, Gujarat, and Maharashtra.

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