Onion exports only with special licence: Govt

NEW DELHI: The government on Thursday slapped restrictions on onion exports, saying the edible bulb can be sold overseas only with a special licence aimed at ensuring adequate availability of the commodity in the domestic market.

Commerce and Industry Minister Kamal Nath "has decided today that the exports of onion, which was hitherto canalised through the designated public sector agencies be restricted immediately," an official statement said.

"Accordingly, a notification has been issued by the government providing that the exports of onion shall herein after be restricted and permissible only under an export license through designated canalising agencies," it added.

The government is trying to ease onion prices, which have risen to Rs 25-30 a kg in retail markets across the country from about Rs 15 a kg two months back.

Earlier today NAFED, the government agency that facilitates onion trade, said there was no bar on export of the commodity but it was only going slow on granting no-objection certificates to exporters.

"The export of onions is still on. However, concerned by the rising prices of onion... certain measures have been pressed into to check the ongoing spurt in the prices of onion," National Agricultural Cooperative Marketing Federation (NAFED) Managing Director Alok Ranjan said in a statement.

To deter overseas sale of onion, NAFED had first increased the minimum export price by $50 for all destinations.

"New NOCs will now be issued to exporters when they submit the utilisation report for NOCs issued to them earlier," he said.