Following a government ban on onion exports, wholesale prices plummeted by 50%. With kharif onion arrivals increasing, prices at Lasalgaon AMPC dropped from Rs 39-40/kg to Rs 20-21/kg. Farmers hope for a reversal akin to the ethanol diversion decision. The ban triggered immediate price drops, though demand might stabilize prices temporarily. Arrival rates surpass expectations, notably at Lasalgaon, with good quality despite hailstorm impacts. The market anticipates stable or slightly decreasing prices in the coming weeks.
The Union government's ban on export of onions is causing worries among farmers as onion prices have dropped suddenly. Farmers are facing a financial crisis due to the fall in onion prices. They are planning to protest against the crash in onion prices and demand the government to lift the ban.
New Delhi, Dec 11 (PTI) The government expects onion prices to fall below Rs 40 per kilogram by January from the current average price of Rs 57.02 per kilogram, Consumer Affairs Secretary Rohit Kumar Singh said on Monday.
Last week, the government banned onion exports till March next year after the retail sales price of the kitchen staple crossed Rs 80 per kg in the national capital and the prices in mandis remained around Rs 60 per kg. To a query on when the onion prices are expected to fall below Rs 40 per kg, Singh said, "very soon. January".