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The sudden ban on onion exports by the Indian government on September 13 drew strong criticism within and outside the country. However, the question arises as to why the decision was made to ban onion exports. The main reason for the export ban is the increase in prices. Exports have been banned from the Indian market as onion prices continue to rise.
Onion prices have been rising in India since last August. At that time the price of one kg was 25 rupees. And at the beginning of October, the price rose to 60 rupees. To address the crisis, the BJP government banned onion exports to lower domestic prices.
The main reasons for the export ban
A few days ago, Karnataka was washed away by heavy rains. With that finished the field onion. As a result, the onion that was supposed to hit the market now didn’t make it. The rains have also damaged onions in states like Madhya Pradesh and Gujarat. In addition, the water has also entered the onions that are kept in the warehouse in the rain. As a result, the onion also rotted. So the onion that is now supposed to be sold on the wholesale market for 15 rupees, in Maharashtra it is 30 rupees. At higher prices outside of Maharashtra. Maharashtra is called the onion warehouse of India. The best and best quality onions are produced there. The central government announced the decision to stop onion exports after the price of onions in the Maharashtra wholesale market exceeded Rs 30 per kg.
Between March and September, the average price of onion in the Lasalgaon market increased by almost 100 percent. In March, the wholesale price for onions was Rs 1,500 per quintal. Now it has risen to 3,000 rupees. The onions were sold at 25-30 rupees per kg on the retail market in June. Now it has risen to 35-40 rupees. As a result, the Indian government had no choice but to ban exports to keep the country’s market stable. The ban is likely to continue until new crops hit the Maharashtra market in early November.
Blocking is also a big reason. There were no people working in the fields during the closure. As a result, production has been much lower. Whatever happens, it couldn’t be brought to market properly. As a result, the price increase for onion was inevitable.
Furthermore, the demand for Indian onions in international markets was increasing abnormally. Especially from the Gulf countries, Sri Lanka and Bangladesh. Sudden heavy rains in the island nation of Sri Lanka have caused severe damage to the country’s crops. As a result, there was a great demand from the country. At the moment, the cost of landing Indian onions in Dubai port is around Rs 32-35 per kg, which is why many exporters are leaning towards it. As a result, if exports were not banned, India would soon face a major crisis.
Source: Indian Express.
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