The Indian government has suspended the export of onions until January 15 in an effort to curb a recent price spike brought on by a lack of supply.
According to a report in the Economic Times onion prices over the past week have doubled with the commodity now fetching Rs60-70 (US$1.30-1.50) per/kg in retail markets. The wholesale price at Azadpur market is now ranging between Rs30-60 (US$0.67-1.30) per/kg, the newspaper reported.
Traders told the publication the supply shortage had resulted from unseasonal rains in the main production hubs in Maharashtra, Gujarat, and the country’s southern states.
Azadpur Fruit and Vegetablesgeneral secretary of chamber Rajendra Sharma said the supply of onions to the Azadpur market had dropped by almost 50 per cent.
One onion trader told the newspaper he believed the price rise had resulted from large-scale onion exports to gulf countries and neighbouring Sri Lanka and Bangladesh since September.
Prices were expected to ease in 15 days when new produce makes its way to the markets, the newspaper reported.
