Lasalgaon: Onion prices have fallen by nearly half in wholesale markets across India following a government ban on exports.
According to data from the Lasalgaon Agricultural Produce Market Committee (APMC), the average wholesale price of onions in Lasalgaon, Maharashtra, the country’s largest onion market, is currently 20–21 rupees per kilogrammeme, down from 39–40 rupees per kilogrammeme just before the ban was imposed on December 7.
The central government initially imposed a minimum export price (MEP) on onions in a bid to curb rising prices, but later decided to ban exports altogether. The ban was imposed after onion farmers protested against the low prices they were getting for their produce.
Onion traders said prices are likely to remain stable or fall slightly in the coming weeks due to the increased supply of kharif onions, which are harvested in the summer months. The Lasalgaon APMC market has seen an arrival of 3.66 lakh metric tonnes of red onions this month until December 19, while the total arrival for the whole of December 2022 was 3.69 lakh metric tonnes.
Onion farmers, however, are hopeful that the government may reconsider its decision to ban exports, especially in light of the recent partial lifting of the ban on the use of sugarcane juice for ethanol production.
The fall in onion prices has come as a relief to consumers, who were facing sky-high prices in recent months. With the increased supply of kharif onions, prices are expected to remain stable or fall further in the coming weeks.
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