Onion prices climb to Rs 2,500 per quintal at Lasalgaon mandi

Onion prices at the Lasalgaon wholesale mandi in Nashik have climbed by 28 per cent in two days to reach Rs 2,500 per quintal on Wednesday after the government lifted the ban on the export of the kitchen staple with effect from January 1.

The government on Monday lifted the export ban on all varieties of onions with effect from January 1 due to declining prices of the commodity.

"The export of all varieties of onions...has been made free with effect from January 1, 2021," the Directorate General of Foreign Trade (DGFT) had said in a notification.

Onion prices on Monday ruled at an average of Rs 1,951 per quintal at the Lasalgaon wholesale mandi and rates have been steadily climbing since then, Lasalgaon APMC Secretary Narendra Waddhvane said.

On Tuesday, onion prices rose to an average of Rs 2,400 per quintal, and further to Rs 2,500 on Wednesday, showing an increase of around 28 per cent over two days.

Similarly, the retail prices in the national capital have also increased by around 25-42 per cent to Rs 50 per kg on Wednesday compared to Rs 35-40 per kg on Monday.

In September, the government had prohibited onion exports because of a spurt in prices and to increase availability in the domestic market.

The DGFT, an arm of the commerce ministry, deals with exports and import-related issues.

Maharashtra, Madhya Pradesh and Karnataka are the top three onion growing states in the country.

India is one of the biggest onion exporters. The export destinations include Nepal and Bangladesh.