Govt's onion export ban leads to 50% price drop in wholesale markets

New Delhi: In a significant development, wholesale onion prices have witnessed a substantial drop of approximately 50% following the government's decision to ban exports on December 7. Traders anticipate that prices are likely to stabilize or experience a slight decrease in the coming weeks, owing to the increased arrival of kharif onion in the markets.

Data compiled by the Agricultural Produce Market Committee (APMC) reveals that the average wholesale prices of onions at Lasalgaon APMC have plummeted from Rs 39-40 per kilogram to the current range of Rs 20-21 per kilogram. This noteworthy decline underscores the impact of the government's export ban on the onion market dynamics.

The government's move to restrict onion exports was aimed at ensuring ample domestic supply and curbing potential inflationary pressures. The decision appears to have had a direct and immediate impact on onion prices in the wholesale markets, providing relief to consumers and traders alike.

Traders in the onion market anticipate that the trend of stable or slightly decreasing prices is expected to continue in the coming weeks. The arrival of kharif onion in larger quantities is considered a key factor contributing to this positive outlook. This seasonal influx is poised to meet the demand and ease market conditions further.

The APMC's market data serves as a crucial indicator of the market's response to the government's intervention. The decline in onion prices is likely to resonate positively among consumers, offering a reprieve from the previous high cost of this essential kitchen staple.

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