India Bans All Onion Exports After Prices Soar
Onions are loaded onto a truck at the Agriculture Produce Market Committee (APMC) wholesale market in Lasalgaon, Maharshtra. (Photographer: Dhiraj Singh/Bloomberg)

India Bans All Onion Exports After Prices Soar

(Bloomberg) -- Terms of Trade is a daily newsletter that untangles a world embroiled in trade wars. Sign up here

India banned exports of onions after retail prices of the vegetable climbed to as much as 80 rupees ($1.13) a kilogram.

Exports of all varieties of onions are prohibited with immediate effect, the Directorate General of Foreign Trade said in a statement Sunday. Onions are a key ingredient in many Indian dishes, making prices a particularly sensitive political issue.

India has enough buffer stockpiles of onion, and prices rose after transportation was disrupted due to flooding in major growing areas of Maharashtra state in western India, Food Minister Ram Vilas Paswan said earlier this month.

The government last month said it would monitor onion prices, and also consider strict action against hoarding and profiteering activities.

©2019 Bloomberg L.P.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.