Curbs On Onion Exports Temporary

NEW DELHI: The government has decided to rein in onion prices, fearing a major controversy over the commodity’s increasing prices. However, department of commerce officials have clarified that the steps taken by the government to check the prices are temporary.

The Directorate General of Foreign Trade (DGFT) had this week issued a notification restricting export of all varieties of onion, including rose onions and Krishnapuram variety, only by licence through designated canalising agencies.

Officials said the licensing route to leash export is only a temporary measure to tide over domestic tight availability position and to stem the accompanying spurt in domestic prices.

Traders said onion prices will come down in the coming weeks in the domestic market including New Delhi where it is being sold at Rs 30-35 per kg, on the fact that area under onion cultivation in the ongoing kharif season is likely to increase by 16 per cent and the consequent spurt in production is likely to be about 20 per cent.