Lifting of ban on onion export pushes up prices  

Government lifting onion export ban causes price spike in Bengaluru markets, impacting farmers and consumers alike.

The Union government’s decision to lift the ban on onion exports has led to volatility in Bengaluru’s onion markets. The price of onions, which was around ₹20-₹25 per kg until last week, has jumped to ₹35-₹40 per kg in retail markets.

With vegetables getting costlier, onions, which were among the cheaper items in the basket, provided some stability to consumers. However, after export was allowed again, most farmers tried to make the best of the situation in both local and international markets, leading to a price increase.

On April 29, the price of big-sized onions was between ₹1,600 and ₹1,800 for 100 kg, while the best Gola variety was priced at ₹1,900–₹2,100 for 100 kg at the Agricultural Produce Market Committee (APMC) yard in Yeshwanthpur. 

On May 7, the same varieties were priced between ₹2,200-₹2,400 and ₹2,400-₹2,500 for 100 kgs, respectively. The spike has led to a ripple effect in retail markets.

“Because the government allowed exports, farmers sold their onions at higher prices, and both prices and arrivals went up in the market,” said B. Ravi Shankar, an onion merchant and secretary of the Onion Merchants Association of Bengaluru. He said the prices fell slightly on Wednesday, but they might go up as some farmers sell their stocks in intervals. 

“Currently, farmers, especially in Vijayapura and the surrounding regions, have stored good quality onions for a good day and are only selling what is in excess. In fact, only 10% of what is coming to the market is of good quality, and that is why the prices of such varieties are high. When it goes even higher, the farmers will sell in intervals,” Mr. Shankar said.

C. Udayashankar, another onion merchant, said onion arrivals were less this week in the market. “The export rates are good, and that is why farmers are directly exporting onions from their districts instead of bringing them to the market here. We are expecting the market to stabilise by Monday.”