Onion prices down by Rs25 in 24 hours in Bangalore

Onion prices in the country fell more than 30% after the government banned exports to rein in the cost of the vegetable.

In Bangalore, the prices fell by about Rs25 per kg—from the Monday’s wholesale price of Rs70-75 per kg, it came down to Rs50-55 on Tuesday.

Prices had more than doubled in the past week due to a shortage caused by unusually heavy rain in growing areas.

Discontent about food price inflation is another headache for the UPA government struggling with a slew of corruption allegations and an emboldened Opposition.

The agriculture ministry on Monday banned exports until Jan 15, and will import onions from Pakistan, as retail prices jumped to Rs80 per kg from Rs35 last week.

“The situation will be normal in two to three weeks. Onion prices rose because of rains in Nasik and other onion growing areas,” agriculture minister Sharad Pawar said on Tuesday.

“The ban on onion exports should help reduce the prices.” Average onion prices at the country’s largest wholesale onion trading hub in Lasalgaon, Maharashtra, fell 34% after the ban to Rs2,500 per 100 kg.

“Restrictions on exports today (on Tuesday) pulled down prices in the wholesale market. They will fall further in the next few days in the wholesale and retail markets,” RP Gupta, director at the National Horticultural Research and Development Foundation (NHRDF), said.