Nashik: APMC Market Sees Price Hike in Onions After Export Ban Lifted

Nashik, Maharashtra: Onion farmers in Nashik, a major production area in western India, are seeing a welcome price increase after the government lifted a long-standing ban on exports.  The Directorate General of Foreign Trade (DGFT) announced the removal of the ban on May 4, triggering a significant shift in the onion market. While the decision comes with certain conditions, farmers have expressed relief and optimism.

Following the announcement, onion prices at the Agricultural Produce Market Committee (APMC) markets in Nashik surged. With the export route reopened, farmers are finally seeing a return on their investment after months of stagnant prices.

Read Also | Government Lifts Onion Export Ban, Sets Minimum Export Price at USD 550 Per Tonne

The export ban, imposed in December 2023, had caused financial hardship for farmers due to depressed prices. However, the recent policy change has brought a positive change in their fortunes.

Before the announcement, average onion prices in APMC markets hovered around 1,000-1,300 rupees per quintal (100 kilograms). However, they jumped to 1,900-2,100 rupees per quintal on May 4, reflecting a substantial increase.

Onion Prices in Major APMC Markets (as of May 4):

Retail onion prices, however, remained largely unaffected by the export ban lift, hovering around 20-25 rupees per kilogram.

Farmers Applaud Price Rise, Express Concerns About Exports

While farmers are happy with the current price increase, they have raised concerns about the newly imposed export regulations. The government has set a minimum export price of $550 per tonne and a 40% export duty. These factors could push the export price per kilogram to around 65 rupees, making it difficult for Indian exporters to compete in the global market where lower prices prevail.