Onion prices at Lasalgaon mandi in Nashik, Maharashtra, decreased by ₹150 per quintal to ₹1,650 per quintal on Tuesday, following the government's announcement to continue the export ban on onions until March 31. This price reduction came after a previous increase where the modal wholesale onion prices had surged 40.62% to ₹1,800 per quintal on February 19 from ₹1,280 per quintal on February 17, driven by reports of the lifting of the export ban. A total of 8,500 quintals of onions were auctioned at this reduced price.
The government has prioritized ensuring sufficient domestic availability of onions at reasonable prices. Despite expectations of lifting the ban, there has been no official government resolution or announcement to that effect. The ban on onion exports is expected to remain in place even after March 31, considering the anticipated lower rabi (winter) onion production due to reduced area coverage in states like Maharashtra. Onion production for the 2023 rabi season is estimated at 22.7 million tonnes. The Agriculture Ministry is set to assess the rabi onion coverage in key growing states like Maharashtra, Madhya Pradesh, and Gujarat shortly. However, exports to certain friendly countries are permitted on a case-by-case basis with approval from the inter-ministerial group.