Onions at Rs 10 soon?

Following MiD DAY's campaign on sky-high prices, govt lifts ban on exports, pulling prices down

Following MiD DAY's campaign on sky-high prices, govt lifts ban on exports, pulling prices down

In a relief to farmers and consumers alike, the government lifted the ban on onion exports last week, which is likely to restore normalcy after the sudden spurt in the crop's prices.


The lifting of the ban on onion export will provide relief to farmers and consumers

Onions, being sold at Rs 16-20/kg currently, may go down to Rs 10-12/kg, market sources say.

The news comes after MiD DAY's extensive campaign on food inflation, spiralling onion prices, and the farmers suffering because of the illegal trading by middlemen.

Wholesalers from APMC market in Vashi say that the lift of the export ban means more revenue from outside, at higher rates. As such, the prices would go down in the domestic market.

The only problem for the farmers is that government has restricted overseas sale by capping the minimum export price to control local prices.
u00a0
But an empowered group of ministers (EGOM) on food is likely to meet today to discuss the minimum export price of onions.

A source added that the Agriculture Ministry has raised concern over it and is seeking reduction in its shipment prices.
u00a0
Whatever the decision, the consumers will benefit. "If the ban is lifted, prices of onions will stabilise and will not slip further.
u00a0
Prices need to be cemented for it to be viable for farmers," said Sanjay Patil, Secretary, APMC market, Vashi.

Favourable weather conditions that have yielded a good crop in the past two weeks have also led to an increase in onion supply in the market.

"Weather conditions have been extremely favourable for onions. Hence, the supply has increased manifold," said Narayan Pote, president of APMC.

The local vendors concur, saying that if they can source onions at a lower price from APMC, the rates will go down.

Rs 20
Current cost of onions per kg in the market