The Union governemnt on 20 September 2011 lifted the ban on export of onions with immediate effect. The decision was taken by the Empowered Group of Ministers (EGoM) headed by Finance Minister in the face of protests by onion farmers in Maharashtra and Karnataka who had held demonstrations against the ban following a dip in prices.
The Minimum Export Price (MEP) was fixed at $ 475 a tonne, the same level when the government decided to prohibit onion shipment. The MEP is to be reviewed every fortnight and a close watch would be kept on the domestic arrivals, total exports, overall domestic availability and domestic prices.
The ban was imposed on 9 September 2011 to check the spiralling prices that touched Rs. 25 a kg in retail in Delhi. While the ban brought down the wholesale prices by Rs. 2-5 a kg in Delhi, the decision triggered protests from farmers in the key producing regions of Maharashtra and Karnataka.
The decision to lift the ban may help farmers but push up retail prices.
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