The Centre can lift the ban on the exports of onions as there is a significant drop in prices in key regions of production. India banned the export on bulb vegetables on December 8 to control domestic price rise which more than doubled in three months. The curb was extended in the form of complete ban till March 31, 2024.
As per sources, the information cited in ET is revealed at a time when the prices dropped to Rs 1,500 per quintal, by around 20% from Rs 1,870 in a few days as supply increased. Since the export ban, the price has dropped by 60% in the main wholesale market of Lasalgaon in Maharashtra. The supply of kharif onions has increased to 15,000 quintals per day.
Onion prices at Lasalgaon were Rs 4,000 per quintal on December 5 which was the year’s highest price. The fall in prices started after the ban was announced.
The overnight export ban triggered protests at onion markets in Gujarat and Maharashtra. Onion growers in Nashik, which is the largest onion growing district in the country, decided to boycott trade from January 1, 2024 because of sudden drop in price.
The traditional Asian buyers, including Bangladesh, Malaysia and Nepal, rely on imports from India to bridge the domestic gap. Therefore, the impact was felt across Asia, with people grappling with increased prices and onion shortages in Nepal.