Onion prices in Lasalgaon market in Nashik district of Maharashtra rose by an average of Rs 200 per quintal after the Union government lifted the export ban on Saturday, PTI reported.
Lasalgaon Agricultural Produce Market Committee (APMC) is said to be the largest wholesale onion market in India.
According to PTI, the government on the same day lifted the ban on onion exports, but imposed a minimum export price (MEP) of $550 per tonne, amid the ongoing Lok Sabha elections. On Friday night, the government imposed a 40 percent tariff on the export of onions.
“There is some rise in the market. Average prices have increased by around Rs 200 per quintal. Farmers will benefit from the decision, but the real impact will be known on Monday when the market reopens,” said Balasaheb Kshirsagar, president of APMC, as according to the PTI.
About 200 quintals of the bulb reached the APMC during the day, sources said.
Prices ranged between Rs 801, Rs 2,551 and Rs 2,100 per quintal, depending on the quality, they added.
A farmer at the market told a news channel that lifting the export ban was a good decision, but it should remain in place for at least a year.
The export tax will reduce the profits of onion farmers, another person said.
“Who will pay for the losses we suffered due to the ban?” asked a farmer.
On December 8, 2023, the government banned onion exports starting March 31, 2024. In March, the ban was extended until new orders.
Farmers in Maharashtra protested against the ban, while the opposition Congress also attacked the Narendra Modi government on the subject.
Government lifts ban on onion exports; imposes a minimum export price of $550 per ton
The government on Saturday lifted the ban on onion exports subject to a minimum export price of $550 per tonne, a move that can help boost the income of a large section of farmers and comes ahead of the Lok elections. Sabha in key producing regions, including Maharashtra, as per the PTI.
The government has imposed a minimum export price (MEP) of $550 per tonne (around Rs 46 per kg) as well as a 40 per cent export duty. Taking into account duties, shipments below $770 per tonne (around Rs 64 per kg) will not be allowed.
On December 8 last year, the Center had banned onion exports in early December to control retail prices amid concerns over a possible drop in production. For the last 4-5 years, the country exported 17 lakh to 25 lakh tonnes of onions annually.
Consumer Affairs Secretary Nidhi Khare said lifting the ban would not lead to any price increase in retail markets.
“Prices will remain stable. If there is any increase, it should be very marginal,” he said, asserting that the government is committed to protecting the interests of both consumers and farmers, the news agency reported on Saturday.
(with PTI inputs)