The government has taken decisive action by banning onion exports until March 31, 2024, in response to a surge in domestic onion prices, which soared to ₹40 per kilogram in wholesale trade. The unexpected and untimely rainfall in Maharashtra severely impacted the onion crop, prompting this significant move by the government.
A team of officials from the central government recently conducted an assessment of fields in Maharashtra to evaluate the damage caused by the unanticipated rainfall.
The surge in onion prices, reaching between ₹38 to ₹41 per kilogram for good-quality onions in wholesale trade, was supported by robust export demand from Bangladesh, reporetd Economic Times.
Traders anticipate a considerable drop in onion prices by January, owing to the increasing arrival of kharif onions.
The prohibition on onion exports from December to February, a crucial period for such exports, not only affects market dynamics but also impacts farmers who rely on these exports, especially for onions with limited shelf life harvested during this time ET rported.
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