Onion prices at the Lasalgaon market went up by average Rs 200 per quintal after the the ban on exports was lifted on Saturday
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Onion prices at the Lasalgaon market in Nashik district of Maharashtra went up by average Rs 200 per quintal after the Union Government on Saturday lifted the ban on exports, reported the PTI.
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The Agriculture Produce Market Committee (APMC) at Lasalgaon is said to be the biggest wholesale onion market in India.
According to the PTI, the government earlier in the day lifted the ban on onion exports but imposed a minimum export price (MEP) of USD 550 per tonne, amid ongoing Lok Sabha elections. On Friday night, the government imposed a 40 per cent duty on export of onions.
"There is some hike 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, APMC chairman, as per the PTI.
Some 200 quintals of the bulb arrived at the APMC during the day, sources said.
The prices were in the range of 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 of exports ban was a good decision, but it should remain in force for at least one year.
The export duty will eat into onion growers' profits, another person said.
"Who will pay for the losses we suffered due to the ban," a farmer asked.
On December 8, 2023, the government banned exports of onions from March 31, 2024. In March, the ban was extended till further orders.
Farmers in Maharashtra had protested against the ban while opposition Congress had also targeted the Narendra Modi government on the issue.
Govt lifts ban on onion exports; imposes minimum export price of USD 550/tonne
Government on Saturday lifted the ban on onion exports subject to a minimum export price of USD 550 per tonne, a decision that can help boost income of a large section of farmers and comes ahead of the Lok Sabha polls in key producing regions including Maharashtra, as per the PTI.
The government has imposed a minimum export price (MEP) of USD 550 per tonne (around Rs 46 per kg) as well as 40 per cent export duty. Taking duty into account, the shipments will not be allowed below USD 770 per tonne (around Rs 64 per kg).
On December 8 last year, the Centre had banned onion exports in early December to control retail prices amid concerns over likely fall in production. During the last 4-5 years, the country annually exported between 17 lakh and 25 lakh tonnes of onions.
Consumer Affairs Secretary Nidhi Khare said the lifting of the ban would not lead to any price rise in retail markets.
"Prices will remain stable. If at all there is any increase, it should be very marginal," she said, while asserting that the government is committed to protect the interests of both consumers and farmers, the news agency reported on Saturday.
(with PTI inputs)
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