India lifts ban on onion exports

17 Feb 2011

The government today lifted a ban on the export of onions after prices of the popular vegetable crashed with new arrivals flooding the market.

Onion prices, which touched Rs80 a kg in retail sales, is currently selling at around Rs20 a kg while wholesale prices have crashed to Rs4-12 kg levels in Nashik and other growing areas of Maharashtra.

The decision to lift the export ban on onion was taken at a meeting of the empowered group of ministers (EGoM) on food, headed by finance minister Pranab Mukherjee.

Exports, however, would be subject to a floor price or `minimum export price' of $600 (around Rs28,000) per tonne, sources said.

Regional offices of the Directorate General of Foreign Trade (DGFT) have been authorised to issue onion export licences, an official release said.

Neither the agriculture and food ministers nor the commerce minister attended the EGoM meeting as all three were otherwise engaged.