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Govt bans onion exports with immediate effect as prices stay elevated -Dhirendra Tripathi

-Livemint.com

* The retail prices of onions spiked to Rs.70- Rs.80 earlier this week

* Floods in key onion-producing states of Maharashtra, Uttar Pradesh, Bihar and others have hurt supplies

New Delhi:
The government has banned export of onions with immediate effect to check spiraling prices which touched Rs.70- Rs.80 per kg in the open market. The ban covers all varieties of onions.

The Directorate General of Foreign Trade under the Ministry of Commerce and Industry issued the notification today, banning the export of the commodity.

The retail prices of onions spiked to Rs.70- Rs.80 earlier this week while the wholesale market prices too climbed to Rs.40- Rs.50 per kg, a hike of Rs.10- Rs.20 kg from a month-ago levels. Six months back, onions were available at Rs.12-15 per kg in the wholesale market.

Floods in key onion-producing states of Maharashtra, Uttar Pradesh, Bihar, Madhya Pradesh, Karnataka, Gujarat and Rajasthan have hurt supplies. Hoarding by traders, ahead of the festival season, is also said to be behind the spike in prices. This phenomenon of traders jacking up the prices is repeated every few years, this time coming after a lull of four years.

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