Farmers Call For Lift On Onion Exports Ban Amid Rabi Crop Surge & Price Decline

New Delhi, Mar 20 (KNN) In a bid to address the plummeting prices of onions in India, farmers are urging authorities to reconsider the ban on onion exports, which is slated to last until March 31, 2024.

The recent surge in arrivals of rabi crops has flooded the market, driving onion prices to a mere Rs 1500 per quintal, down from the previous Rs 4500 per quintal before the export ban.

Jaydutt Holkar, the director of the Agricultural Produce Market Committee (APMC) in Lasalgaon, Nashik, Maharashtra, highlighted the adverse impact of the export restriction, stressing that current prices fail to cover the production costs of onions.

With rabi crop arrivals expected to peak in the coming weeks, there's a looming concern of further price declines.

Balasaheb Misal, a former director of the Maharashtra Mandi Board and an onion farmer, emphasised the precarious situation, stating that the current prices are insufficient to sustain onion cultivation.

An official projected that the rabi harvest, constituting 60 per cent of the total onion output, is likely to reach its zenith in April, underscoring its significance in maintaining supply stability until October.

The Department of Consumer Affairs reported a sharp decline in modal retail prices of onions, from Rs 60/kg to Rs 30/kg following the imposition of the export ban in December last year.

However, despite this, retail inflation for onions remains persistently high, with a 22.1 per cent increase in February and a staggering 29.69 per cent rise in January 2024 compared to the previous year.

The government's decision to ban exports and subsequently allow limited exports to Bangladesh and the United Arab Emirates underscores the complexities of managing onion supply and demand dynamics.

Previously, in October 2023, a minimum export price (MEP) of USD 800/tonne was imposed, followed by a 40 per cent export duty in August of the same year, all aimed at stabilising domestic markets.

However, challenges persist as the agriculture ministry predicts a significant decline of up to 16 per cent in onion production for the current crop year, primarily attributed to a substantial decrease in Maharashtra's output, the country's leading onion producer.

(KNN Bureau)