The Narendra Modi government may consider new minimum export price for onions after Centre banned the export of all varieties of onions with immediate effect.
Sources have told CNBC-TV18 that committee of secretaries head by cabinet secretary took stock of the situation last week and decided that high prevailing wholesale prices in mandis call for urgent market and policy intervention.
Earlier, the Directorate General of Foreign Trade (DGFT) said in a notification, "The export of all varieties of onions... is prohibited with immediate effect."
The DGFT, an arm of the commerce ministry, deals with exports and imports-related issues. The provisions under transitional arrangement shall not be applicable under this notification.
In the national capital, onion prices were ruling at around Rs 40 per kilogram. Wholesale price inflation for onion stood at (-) 34.48 percent in August. Maharashtra, Karnataka, Madhya Pradesh, Bihar and Gujarat are major onion producing states.
It may be noted that 40 per cent of the country's total onion crop is produced in the kharif season and the rest during the rabi season. The kharif crop, however, cannot be stored.