The recent ban on onion exports by the Central government on December 8, in response to reduced onion production and escalating prices, has contributed to the turmoil in the onion market. The export ban, announced by Dr. Bharati Pawar, the Minister of Health and Family Welfare and Member of Parliament from Dindori, Maharashtra, has been lifted even before the initially set deadline of March 31, 2024. This move, aiming to curb the rising onion prices, is expected to alleviate the shortage in the domestic market.
The decision to lift the export ban was disclosed after a meeting chaired by Home Minister Amit Shah. Initially, 3 lakh metric tons of onions were permitted for export. However, no official notification has been issued regarding this decision so far. The lifting of the export ban has been met with mixed reactions, considering the ongoing concerns about increasing onion prices.
Surge in Onion Wholesales Prices
Following the announcement, there has been a significant increase in average wholesale onion prices in Lasalgaon, the largest onion wholesale market in the country. According to reports, the average wholesale prices surged from INR 1,280 per quintal on Saturday to INR 1,800 per quintal on Monday. Approximately 10,000 quintals of onions were auctioned on that day, with the minimum and maximum wholesale prices set at INR 1,000 and INR 2,100 per quintal, respectively.
Government’s Intervention and Previous Export Ban
The government’s intervention in the onion market comes after witnessing a steep rise in prices last December, with garlic prices crossing INR 550 per kilogram in retail markets. The ban on onion exports, initially imposed to ensure ample supply in the domestic market, has been lifted earlier than expected.
The government’s efforts to stabilize onion prices are crucial, given the significant role onions play in Indian cuisine and their importance in households. As the situation unfolds, consumers and traders alike are keenly observing the impact of these policy changes on onion prices and market dynamics.
This article aims to shed light on the factors contributing to the surge in onion prices, the government’s recent decision to lift the export ban, and the implications of these developments on the onion market.