The Indian government is planning to lift the ban on onion exports as the price of the vegetable has dropped significantly in the main producing regions.

India, one of the biggest exporters of onions, banned shipments of the bulb vegetable on 8 December, after domestic prices more than doubled in three months following a drop in production, reports The Economic Times.

In the last few days, the price has dropped around 20% to Rs 1,500 per quintal from Rs 1,870 as arrivals increased.

Since the ban was imposed on exports, the price has dropped 60% in the main wholesale market of Lasalgaon in Maharashtra, said traders in the area.

The arrival of fresh kharif onions has increased to 15,000 quintals a day.

The kharif produce has a shorter shelf life than the rabi crop. “We don’t want the prices to drop too much either,” the official said.

The report said that India also wants to keep up its global market position in the world and honour the trade deals that have already been signed, the official said.

According to Trading Corporation of Bangladesh, each kg onion was sold at Tk80-90 on 3 January in Dhaka, which was 126.67% higher than the previous corresponding period.

And the imported onion was sold at Tk100 to Tk120 which is 175% higher compared to the same time of the last year, the TCB data also showed.