Export Suspended in the Wake of Rising Vegetable Prices

The government suspended export of the vegetable until 15 January 2010 to cool the rising prices of vegetables particularly of Onion. The decision was taken by the government at an emergency meeting of the National Agricultural Cooperative Marketing Federation (Nafed) in Delhi in the wake of onion prices soaring to Rs 80 per kg. Marking the first import of the vegetable via the land route in 12 years, 12 trucks loaded with onions arrived at the Attari-Wagah border on 20 December 2010.

India had in early 2010 exported thousands of tonnes of onion to Pakistan when the country was trying to recover from catastrophic floods. However, the government has now ordered a ban following severe crunch of the vegetable due to destruction of crops in Maharashtra and Gujarat caused by unseasonal rains. Onion prices hit the roof across the southern states- Maharashtra, Karnataka, Tamil Nadu and Andhra Pradesh. The retail market feedback from Pune, Bangalore and Chennai mentioned that onion prices were between Rs 70 and Rs 80. Some retailers attributed price rise to supply crunch. Unseasonal rains in parts of western India and some southern states have damaged the crop resulting in the onion supply in wholesale market in Delhi dip by 40% due to damaged crops. Northern India was banking heavily on the back-up stock to meet its demand after crops in Maharashtra and Rajasthan suffered due to heavy monsoon rain.