The Centre on Sunday banned the export of onions and imposed stock limits on onion traders to try and rein in the galloping prices of the vegetable that had cost the BJP an election in Delhi in 1998.
With Assembly elections in Maharashtra and Haryana round the corner, the Modi government stepped up its efforts to check the rising onion prices after its earlier authorisation of state governments to impose stock limits did not bring the desired result.
The new countrywide stock limit of 100 quintals per retailer and 500 quintals per wholesaler, imposed directly by the Centre, is aimed at ending the hoarding of onions.
Moving with urgency, the directorate-general of foreign trade in the commerce ministry issued a notification on Sunday, barring onion exports till further orders to improve the vegetable’s availability in the domestic market.
On September 13, the government had set the minimum export price for onions at $850 (freight on board) per tonne, but exports had continued at a reduced level.
