The government of India on Monday banned the export of all varieties of onions except those cut, sliced or broken in powder form, with immediate effect. The move was apparently aimed at increasing domestic supply and reducing prices which have risen in the recent past to Rs 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 ban includes Bangalore rose onions and Krishnapuram onions. “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.

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India is the biggest exporter of Onions in the world. The president of the Mumbai-based Onion Exporters Association said that due to heavy rains this year, the summer-sown crops have been damaged and their harvesting has been delayed.

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