Despite a significant drop in onion prices across key mandis, the government remains cautious, with no immediate intention to lift the export ban on the crucial vegetable, implemented last month.
Official sources have revealed that a recent evaluation of the nation's onion supply led to a consensus that lifting the export ban is currently unfeasible. "We are closely monitoring the onion supply and pricing situation," an official commented. Mandi prices at Lasalgaon, Nasik, Maharashtra, the country's wholesale trading hub, have fallen from around Rs 3,700 – 4,000/100 kgs to Rs 1,500 – 1,800/100 kgs following the ban on shipments announced on December 7 until March 31, 2024.
In other key onion-producing districts like Pune, Ahemadnagar, and Solapur, mandi prices currently hover around Rs 1,800 – 1,900/100 kgs. The high moisture content of the kharif harvest means it can't be stored, leading to increased arrivals and lower prices. Farmers and traders are urging the government to lift the export ban to prevent prices from plummeting further.
According to the department, retail onion prices fell by 33% to Rs 40/kg on Thursday from Rs 60/kg on December 8, when the export ban was announced.
Source: financialexpress.com