Government Reconsiders Onion Export Ban Amidst Falling Prices

Maharashtra, Jan 3 (KNN) Weeks after enforcing a ban on onion exports, the government is evaluating the circumstances and may reconsider the decision to mitigate the substantial decline in mandi prices for the vegetable.

As kharif harvest arrivals coincide with the export ban imposed from December 7 until March 31, 2024, mandi prices at Lasalgaon, Nasik, Maharashtra, the central hub for the country's wholesale trade, have dropped to Rs 1500 per quintal on Tuesday, significantly lower than the approximately Rs 3700 per quintal prevailing before the export restriction.

“The government may allow exports of onion through cooperatives,” stated a trade source.

A trader mentioned that due to the high moisture content in the onion kharif harvest, storage becomes impractical, resulting in increased arrivals and a subsequent decline in prices.

Both farmers and traders have been urging the government to lift the export ban to prevent further plummeting of prices.

“The mandi prices have fallen sharply and it is currently prevailing below the cost of production,” said Balasaheb Misal, former director, Manmad (Maharashtra) mandi board and an onion farmer, reported FE.

As per the department, the indicative retail prices of onions witnessed a 50 per cent decrease, falling to Rs 30 per kg on Monday from Rs 60 per kg on December 8 when the export ban was declared.

In November, retail onion inflation sharply increased by 86.46 per cent, with prices reaching Rs 90 per kg in several cities.

This surge was attributed to the delayed arrival of kharif crops and unseasonal rains affecting the crops in Maharashtra and Karnataka.

In the meantime, an official stated that the government's intervention in procuring kharif onions and concurrently distributing them in wholesale and retail points has successfully reduced average prices by 30 to 35 per cent in the last month.

Government agencies, including the National Cooperative Consumers Federation of India (NCCF) and the National Agricultural Cooperative Marketing Federation of India Ltd. (NAFED), have acquired 20,000 tonnes of kharif onions to date.

This procurement aligns with the government's decision to elevate the buffer stock target to 0.7 million tonnes from 0.5 million tonnes for the current fiscal year.

NCCF and NAFED are presently offering onions from the buffer stock to consumers at a significantly subsidised rate of Rs 25 per kg in various towns.

(KNN Bureau)