Onion prices have increased by almost 28% in leading wholesale markets a day after the government announced lifting of the ban on exports from January 1, and traders said the move will support prices even as the kharif harvest season has started.
"The prices will continue to remain firm with the pickup in exports," Nanduseth Dhaga, president of Lasalgaon Traders Association, said.
Onion prices reached Rs 23 a kg in Lasalgaon APMC on Tuesday, up from Rs 18 a kg the previous day, he said. The government had banned exports in September this year as prices were rising after a low harvest. Major buyers of Indian onions include Indonesia, Malaysia, Sri Lanka, Nepal and Middle East.