Onion Prices Fall in Lasalgaon Mandi as Export Ban Continues

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Onion prices in Lasalgaon mandi, Nashik district, Maharashtra, witnessed a significant drop of Rs 150 per quintal on Tuesday, February 21, following the government's announcement that the ban on onion exports will remain in effect until March 31.

Export Ban Rumors Cause Price Spike

Earlier, on February 19, rumors of the export ban being lifted led to a sharp increase in onion prices. The modal wholesale onion prices in Lasalgaon, India's largest wholesale onion market, surged by 40.62% from Rs 1,280 per quintal on February 17 to Rs 1,800 per quintal.

Prices Stabilize After Ban Confirmation

However, with the government's confirmation that the ban on onion exports remains in place, prices stabilized on Tuesday. The average price dropped by Rs 150 per quintal, settling at Rs 1,650 per quintal, with 8,500 quintals of onions auctioned.

Government Prioritizes Domestic Availability

Lasalgaon APMC chairman Balasaheb Kshirsagar stated that while prices had increased slightly last week, they have since stabilized due to the absence of any government resolution or announcement regarding the lifting of the ban.

Consumer Affairs Secretary Rohit Kumar Singh reiterated that the ban on onion exports has not been lifted and remains in force. The government's primary focus is to ensure sufficient domestic availability of onions at reasonable prices for consumers.

Ban Likely to Continue Beyond March 31

Sources suggest that the ban is unlikely to be lifted even after March 31, considering the upcoming general elections and the anticipated lower production of rabi winter onions due to reduced cultivation area, particularly in Maharashtra.

Rabi Onion Production Assessment

In the 2023 rabi season, onion production was estimated to be around 22.7 million tonnes. Agriculture Ministry officials will assess the rabi onion coverage in key growing states like Maharashtra, Madhya Pradesh, and Gujarat in the coming days.

Limited Exports Allowed

Despite the ban, the export of onions to friendly countries is permitted on a case-by-case basis, subject to approval from an inter-ministerial group.