The Centre has lifted the ban on exports of all varieties of onions, with effect from January 1. The Directorate General of Foreign Trade issued a notification lifting the prohibition on Monday.
The permission to export the kitchen staple again, after a three and a half month ban, would “increase farmers’ income”, tweeted Commerce and Food Minister Piyush Goyal. The move comes against the backdrop of long-drawn farmers’ protests.
Onion farmers and traders have been demanding the lifting of the ban, as fresh arrivals from the kharif crop flood the market, pushing prices lower.
The ban was imposed on September 14 when seasonal shortages were exacerbated by excess rainfall and flooding causing damages in key producer States. Although the average retail price was only ₹30 per kg at the time, according to Consumer Affairs Ministry data, the short supply was expected to drive rates higher. By late October, market rates in many metros had crossed the ₹100 per kg mark, with national averages crossing ₹60, spurring the Centre to impose stock limits on domestic traders as well.
Prices have now fallen back down to ₹37 per kg, as the fresh kharif harvest arrives in the wholesale market.
