Centre lifts ban on onion exports from January 1; relief to farmers [Details]

The sudden spike in the onion price resulted in the Indian government imposing a ban on export of all varieties of onions in September. But as the prices of onions have plunged, the Centre has decided to resume exports.

In a notification dated December 28, the Ministry of Commerce & Industry said that it would allow export of all varieties of onions, including Bengaluru Rose onions, and Krishnapuram onions, from January 1, 2021.

Relief to farmers

The government had imposed a ban on onion exports after the sudden surge in its price in September in an effort to increase availability and correct the price of the commodity in the domestic market. The price of the onions had spiked to Rs 5,000 per quintal but has since dropped to Rs 2,000 as of earlier this month.

Despite the plunge, the Centre had kept mum on the ban, which irked some farmers. Earlier this month, President of the Maharashtra State Onion Producers Association Bharat Dighole said the association submitted representations to several government authorities seeking resumption of export.

"Prices of onion went up to Rs 5,000 on September 14, and the Centre immediately imposed an export ban. After that, the income tax department raided traders to prevent the price of onion from increasing. The government also decided to import onion to reduce prices," he said.

With the government's decision to lift the ban, farmers can once again witness a steady flow of their produce in the market.