Government bans export of onions 

#GS3 #Economy  

The Union Government on September 14, 2020 banned the export of onions with immediate effect. The order bans export of all varieties of onions except cut, sliced onions or onions broken in powder form. 

Why has the government banned the export of onions? 

  • The government has reportedly banned the export of onions to increase domestic supply and reduce prices. The retail price of onion currently stands at Rs 40 per kg in the national capital. 
  • According to Ajit Shah, President of Onion Exporters' Association, excessive rainfall in the southern states of Karnataka and Andhra Pradesh damaged the summer-sown onion crop and delayed harvesting in other states. 
  • Overall, 40 percent of India's total onion crop is produced in the Kharif season and the rest during the rabi season. However, the Kharif crop cannot be stored. 

Impact 

  • India is the world's largest exporter of onions, which is a staple in South Asian cooking. India exports onion to countries including Bangladesh, Sri Lanka, Malaysia and Nepal. 
  • Major Onion Producing States in India 
  • Five Indian states -Maharashtra, Karnataka, Madhya Pradesh, Bihar and Gujarat are major onion growing states. 
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