The Government Decided to Lift a Ban on Wheat Exports and Put a Ban on Onion Exports

The government has decided to lift a ban on wheat exports and put a ban on onion exports to control its rising prices. The decision to open wheat exports was taken by the empowered Group of Ministers EGoM on food, headed by Finance Minister Pranab Mukherjee in the wake of the record production and storage problem.

The Union Ministry for Food and Consumers Affairs will stop the export of wheat and non-basmati rice once shipments reaches two million tonnes each. Wheat exports was banned early in 2007 to augment buffer stock when the output had fallen.

The ministry also said that onion export has been banned and the situation will be reviewed every two weeks. Onion prices have risen to 25 rupees per kilogram in retail market from 15 rupees per kilogram a month ago on supply constraints.