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Onion Farmers Troop Into Markets After Export Ban Lifted.


Date: 22-09-2011
Subject: Onion Farmers Troop Into Markets After Export Ban Lifted
Onion farmers brought in their produce into key Indian markets on Wednesday after the government relented to their demands and lifted a ban on exports, traders said.

"Arrivals have started. They will pick up in next 2-3 days," said a senior official at Lasalgaon market, in Maharashtra, the biggest market for the bulb in India.

"The government has allowed exports, but has kept minimum exports price very high. At this price exports would be negligible," he said.

The government on Sept.8 banned export on concerns lower output may lift the prices of the politically sensitive staple. Farmers in Maharashtra, the country's top producer, protested by refusing to supply their produce to local markets.

The supply dried up in the two weeks since the export ban, bringing the onion trade to a halt in key markets in Nashik district of Maharashtra.

On Tuesday the government lifted ban on onion exports, but kept minimum exports price (MEP) at $475 per tonne.

Average onion prices at the country's largest wholesale onion trading hub in Lasalgaon stood at 1,100 rupees per 100 kg on Wednesday, compared to 1,000 rupees on Sept. 8.

Source : in.reuters.com

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