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Why govt bans onion exports? Check dramatic rise in onion costs, exports throughout pandemic

onion prices, food prices, onion exports, tomato prices, potato prices, price of vegetablesOnion is without doubt one of the main elements of the Indian meals platter, and thus the rise in costs impacts virtually all of the sections of society.

Onion costs, which remained benign till August, witnessed a sudden surge within the month of September, forcing the federal government to right away ban the exports of all forms of onions. Onion value was Rs 20-22 per kg throughout June-August, nevertheless it dramatically rose to Rs 30 per kg, as on September 10, based on the Price Monitoring Division of the Department of Consumer Affairs. Onion is without doubt one of the main elements of the Indian meals platter, and thus the rise in costs impacts virtually all of the sections of society. While the onion costs shot up within the month, the costs for potato and tomato additionally rose from Rs 33 per kg and Rs 54 per kg to Rs 37 per kg and Rs 60 per kg on-month, as on September 10.

As India stepped ahead to turn out to be a kitchen for the world, the exports of agricultural commodities from March to June 2020 skyrocketed by 23.24 per cent on-year to Rs 25,552.7 crores, based on the Ministry of Agriculture & Farmers Welfare. The authorities had stated that self-reliant agriculture is crucial for the purpose of an Atmanirbhar Bharat; and for this, agricultural export is extraordinarily vital as moreover incomes overseas trade for the nation, the exports assist farmers, producers, and exporters to benefit from a wider worldwide market and enhance their earnings.

Also Read: CPI inflation eases solely a tad to six.69% in August

The exports of onions and shallots additionally jumped amid the lockdown months of April-June. Onions and shallots price Rs 2,340 crore have been exported within the earlier full fiscal 12 months FY 2019-20. However, in only one quarter (Q1) of the present fiscal 2020-21, onions and shallots price Rs 1,203 crore have been exported from India, based on the Department of Commerce. It is to be famous that there was a fall of 33.5 per cent on-year within the exports of onion and shallots within the final fiscal.

Meanwhile, India had final 12 months banned the exports of the important thing kitchen staple attributable to an increase in costs and set the minimal export value (MEP) of onion at $850 a tonne to curb its shipments. However, the MEP was lifted in March this 12 months, and onions have been made free for export.

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