India has increased the minimum export price of onion to $700 per tonne from $425 to restrict onion exports, prompting a further hike in its prices in Bangladesh.

According to data from the Trading Corporation of Bangladesh (TCB), the price of locally grown onions has increased by Tk 30 and price of the imported onions by Tk 20 to Tk 25 in last one week.

Following a programme in New Delhi, India's Union Food and Consumer Affairs Minister Ram Vilas Paswan made the disclosure, saying the state governments have been asked to impose stock holding limits on traders, reports Indian Express.

Paswan also urged all the state governments to take severe action against hoarders to control prices.

The wholesale price of onion at Lasalgaon in Maharashtra, Asia's biggest onion market, to around Rs 60 per kg, while the retail price has increased up to Rs 80 per kg in many parts of India.

Terming the onion price hike as a temporary phenomenon, the minister said there was no onion shortage there. The hoarders were trying to take advantage of the situation, he added.

Meanwhile, Paswan blamed the Delhi government for not taking adequate action against hoarders.