India bans export of onion seeds

The ban has been imposed in the wake of surging onion prices in the domestic market amid concerns regarding seeds' shortage ahead of the next sowing season. 

Oct 30, 2020 13:52 IST

The Indian Government has banned the export of onion seeds with immediate effect. A notification regarding the same was issued by the Director-General of Foreign Trade on October 29, 2020.

The ban has been imposed in the wake of surging onion prices in the domestic market amid concerns regarding seeds' shortage ahead of the next sowing season. Earlier, the export of onion seeds was mentioned in the restricted category.

Union Commerce Minister Piyush Goyal said that the government under Prime Minister Narendra Modi has banned the export of onion seeds to ensure the availability of onion at affordable prices for consumers.

Exceptions

The Directorate General of Foreign Trade (DGFT) said that the provisions under Para 1.05 of Foreign Trade Policy 2015-20 regarding transitional arrangement shall not be applicable under the notification. 

Check the Full Notification here: 

What does the restricted category mean?

When an item is placed in the restricted category, it means that the exporter will require a licence or permission from the government for shipment of the product.

Background 

The Director General of Foreign Trade (DGFT) has already banned exports of onion to contain onion prices. The Centre had further imposed a stock holding limit on retail and wholesale traders till December 31 to boost the availability of onion in the domestic market and provide relief to consumers. Under the stock holding limit, the retailers can stock onions up to only 2 tonnes, while wholesale traders can stock only up to 25 tonnes. 

The onion prices had shot up sharply in the last couple of weeks due to damage caused to the Kharif crop because of heavy rainfall.

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