New Delhi: Onion Export was immediately banned by the Central Government amid rising prices. On Monday, a notification has been given by the government on this. Onion crops have been damaged due to heavy rains in the southern states. Due to this, onion prices are continuously increasing in the domestic market. Since August 8 in the wholesale markets, onion prices have been steadily rising. During this time, the prices have increased to Rs 2500 per quintal.
The largest cultivation of onions worldwide is done in India only. Onion is also the most used in South Asian mines. This is why countries like Bangladesh, Nepal, Malaysia and Sri Lanka depend on Indian onions. Within a month, the wholesale price of onion in Lasalgaon, Maharashtra has reached Rs 30,000 per ton. Lasalgaon is the largest onion market in the country.
Onion crop loss due to heavy rains
Ajit Shah, president of the Mumbai-based Onion Export Association, said that southern states like Karnataka and Andhra Pradesh have seen heavy rains this year. This is the reason why onion crops have been damaged. Whereas in other states, onion crop is getting delayed at the moment.
Onion prices are not expected to decrease yet
Onion prices sold in retail at Rs 15-20 per kg have now gone up to Rs 35-45 per kg. Traders say that now prices of onion are rising after potato. The reason for this is the deterioration of the onion crop. Due to heavy rains, the crop has been damaged and the arrival has decreased in many areas including North India. Onion prices are not expected to decrease for the next 15 days.
Onion is mainly produced in six states. 50 percent of onion comes from 10 mandis of India. Six of these are in Maharashtra and Karnataka. This means that 50 percent of onion prices are in the hands of a few hundred traders. These traders can influence onion prices in their own ways. Also, there is no fixed minimum support price of onion.
