India: Onion prices halved in less than two weeks following the export ban

Onion prices in the wholesale markets have fallen by about 50% after the government banned its exports on December 7. Prices are likely to remain stable or decrease slightly in the coming weeks as the arrival of kharif onion picks up pace, traders said.The average wholesale prices of onion at Lasalgaon AMPC is Rs 20-21 per kilogramme, down from Rs 39-40/kg just before exports were banned, showed market data compiled by the APMC.The central government had first imposed a minimum export price (MEP). on onion, which was followed by the decision to impose a complete ban on exports on December 7. Onion prices started falling immediately after the export ban was announced. Onion farmers, who have been agitating for lifting of the export ban, are hopeful that the government may reconsider its decision similar to the partial revision of the decision to ban diversion of sugarcane juice for ethanol, trade insiders said. Onion farmers are slowly bringing their crop to the markets as they are ...