New Delhi: The government has banned export of onions with immediate effect to check spiraling prices which touched ₹70- ₹80 per kg in the open market. Floods in key onion-producing states of Maharashtra, Uttar Pradesh, Bihar, Madhya Pradesh, Karnataka, Gujarat and Rajasthan have hurt supplies. Hoarding by traders, ahead of the festival season, is also said to be behind the spike in prices. This phenomenon of traders jacking up the prices is repeated every few years, this time coming after a lull of four years. Onion prices can be a sensitive issue in elections and the ruling Bharatiya Janata Party (BJP) would remember that -- the party had lost the assembly elections in Delhi in 1998 due to high onion prices then.

Source: Mint September 29, 2019 10:18 UTC