India plans to lift the ban on onion exports due to a significant drop in vegetable prices in the main producing regions, reports The Economic Times, quoting a senior official as saying.
India, one of the biggest exporters of onions, banned shipments of the bulb vegetable on December 8, after domestic prices more than doubled in three months following a drop in production.
In the last few days, the price has dropped around 20% to Rs 1,500 per quintal from Rs 1,870 as arrivals increased. Since the ban was imposed on exports, the price has dropped 60% in the main wholesale market of Lasalgaon in Maharashtra, said traders in the area.
The arrival of fresh kharif onions has increased to 15,000 quintals a day.
The kharif produce has a shorter shelf life than the robi crop. “We don’t want the prices to drop too much either,” the official said.
India also wants to keep up its global market position in the world and honour the trade deals that have already been signed, the official said.