In view of the soaring prices of onions in India, the Delhi government seeks to ban the commodity's export outside the country. Many are close to panicking as onion supply is considerably falling short of demand.

A shortage of rain in Maharashtra has resulted in a shortage of onion harvest that led to the price rise. Prices are set to increase further until more onions are harvested. Currently, onion prices in the wholesale market stands at Rs 50 per kg, with retail outlets charging between Rs 60 and Rs 80.

Wholesalers insist that stocks have to be created, or there will be no onion supply for months. Meanwhile, Delhi Food and Supplies Minister Haroon Yusuf told Business Today that there are 2,200 tons of onions in the city godowns and that subsidized onions will be sold from 17th August.

"The chief minister Sheila Dikshit will write a letter to Agriculture Minister Sharad Pawar to stop the export of onion," he said.

(AW: Sruthi)