Onion prices drop after export ban

Prices of big onion, which went up slightly in Coimbatore on Monday afternoon, came down later in the day as the Central Government banned export of onions.

According to M. Rajendran, president of Thyagi Kumaran Market vegetable traders’ association, the wholesale price of big onion here on Monday morning hovered around ₹26 a kg. As the auction prices jumped by nearly ₹10 a kg at Nasik, one of the main onion markets in the country, the prices increased here too. However, with reports trickling in that the Government had banned export of onions, the prices dropped by Monday evening.

“There was hardly any big onion arrival here on Tuesday and the arrivals on Wednesday are expected to be less. The prices are likely to be the same as that of Monday. However, there is a possibility of the prices spiralling in a month as rains have damaged onion crops in Karnataka,” he said.

Meanwhile, according to sources, perishable commodities - vegetables, fruits and flowers - were among the main items exported by air from the Coimbatore International Airport during the last five months.

Though onion was not a major commodity exported from here, the ban is expected to have a slight impact on export of perishables from here.