Onion Prices Surge at Lasalgaon APMC Following Export Policy Changes

Onion prices surged at Lasalgaon APMC after the Indian government scrapped the minimum export price (MEP) and cut export duty by half. The policy changes are seen as a beneficial move for the market, though there remains uncertainty over export charge reductions. The changes precede upcoming state elections.

Onion prices at the Lasalgaon Agriculture Produce Market Committee (APMC) spiked on Saturday after the Union government eliminated the minimum export price (MEP) and slashed export duties by half, sources reported.

Lasalgaon APMC, India's largest onion wholesale market, saw an average price increase of Rs 433 per quintal. 'The removal of MEP is a positive step. The market has shown improvement, but there should be no export ban,' stated Balasaheb Kshirsagar, Lasalgaon APMC chairman. However, there remains ambiguity regarding the exact reduction in export charges.

On Saturday, 425 vehicles carrying 5,182 quintals of onions arrived at the market, fetching prices between Rs 3,700 to Rs 4,951 per quintal. In contrast, Friday saw 302 vehicles with prices ranging from Rs 2,800 to Rs 4,411 per quintal. The export duty reduction, effective from September 14, reduces the former 40 percent duty imposed since May 4 to 20 percent. These policy changes arrive ahead of elections in Maharashtra and Haryana.

(With inputs from agencies.)