India / Onion prices jump 28% after govt lifts export ban

Zoom News : Dec 31, 2020, 12:34 PM
MUMBAI: Onion prices at the Lasalgaon wholesale mandi in Nashik have climbed by 28% in two days to reach ₹2,500 per quintal on Wednesday after the government lifted ban on export of the kitchen staple with effect from January 1.

The government on Monday lifted the export ban on all varieties of onions with effect from January 1 due to declining prices of the commodity.

"The export of all varieties of onions...has been made free with effect from January 1, 2021," the Directorate General of Foreign Trade (DGFT) had said in a notification.

Onion prices on Monday ruled at an average of ₹1,951 per quintal at the Lasalgaon wholesale mandi and rates have been steadily climbing since then, Lasalgaon APMC Secretary Narendra Waddhvane said.

On Tuesday, onion prices rose to an average of ₹2,400 per quintal, and further to ₹2,500 on Wednesday, showing an increase of around 28% over two days. Similarly, the retail prices in the national capital have also increased by around 25-42% to ₹50 per kg on Wednesday compared to ₹35-40 per kg on Monday.

In September, the government had prohibited onion exports because of a spurt in prices and to increase availability in the domestic market.

The DGFT, an arm of the commerce ministry, deals with exports and import-related issues.

Maharashtra, Madhya Pradesh and Karnataka are the top three onion growing states in the country. India is one of the biggest onion exporters. The export destinations include Nepal and Bangladesh.