The Lasalgaon market in Nashik, Maharashtra, experienced a sharp 40% surge in onion prices just hours after the Indian government reportedly lifted the ban on onion exports. The decision, yet to be officially announced, has stirred discussions on its timing and potential implications for both domestic and international markets.
Minister of State and Nashik Rural MP, Bharti Pawar, disclosed that the removal of the export ban was decided during a meeting led by Union Minister Amit Shah. The aftermath of this decision has quickly manifested in escalating onion prices, impacting both wholesale and retail markets.
Upon news of the export ban being lifted, the average price of onions in Lasalgaon rose from Rs 1,280 per quintal to Rs 1,800 per quintal. Approximately 10,000 quintals of onions were auctioned, with the minimum wholesale price at Rs 1,000 per quintal and the maximum at Rs 2,100 per quintal. Reports indicate that onion exporters have already started purchasing onions for foreign markets, contributing to the surge in market prices.
The ban on onion exports was initially implemented by the Central Government in December to address the rising onion prices in the domestic market. However, discontent among onion producers and traders led to the government’s decision to lift the ban ahead of the scheduled deadline of March 31, 2024.
Farmers, who had experienced significant losses and challenges in covering production costs due to the export ban, welcomed the decision. Despite the positive response from the agriculture sector, concerns have been raised about the abrupt spike in onion prices and its potential impact on consumers.
While no formal notification has been issued regarding the removal of the export ban, the move has sparked debates on its timing, with some speculating a connection to the upcoming Lok Sabha elections.
