Government Considering Lifting Ban On Onion Exports

The government is considering lifting ban on exports of onion as fresh arrival of the commodity has started softening its prices in the domestic market, an official said.

"Arrival of fresh onion will further soften the prices here so there is a need to lift the export ban," the official said.

Onion prices have come down to around Rs 60-70 per kg depending upon quality and locality from the peak of Rs 160 per kg last month.

Fresh onion is available from January to May.

In September 2019, the government banned the export of onion to increase availability of the commodity in the domestic market and contain rising prices. The government had also imposed stock limits on traders.

Retail onion prices had skyrocketed in Delhi and other parts of the country due to supply disruption from flood-affected growing states like Maharashtra.

Onion production is estimated to have declined by around 25 percent in the Kharif and late Kharif seasons of 2019-20 crop year compared to the previous year due to late monsoon and then excess rains in the major producing states.