The Centre's ban on onion export will be reviewed by the Empowered Group of Ministers on Tuesday. The ban came into effect on September 7 on fears that onion prices could rise, stoking food inflation further.

The ban has led to agitation by farmers across the country. Maharashtra's farmers, who produce about 33 per cent of the nation's output, have stopped selling onions. Their inventory has increased to about 14 lakh tonnes.

In Nashik, the nerve centre of onion trade in the country, the farmers' agitation has led to agriculture produce market yards being shut indefinitely.

On Saturday, the Union Finance Minister, Mr Pranab Mukherjee, along with the Chief Minister of Maharashtra and other senior State Ministers met a delegation of farmers from the State and assured it that the Centre will look into their demands.

Maharashtra's Minister for Public Works, Mr Chhagan Bhujbal, who has a strong base in Nashik, told reporters after the meeting that the farmers want the ban to be lifted immediately or the Centre should fix a minimum support price.

Farmers told Mr Mukherjee that the sudden rise in North India was not triggered by them and they must get at least Rs 1,200 for a quintal of onion. Export ban will lead to drastic fall in prices and that would result in massive losses, Mr Bhujbal said.

“At Rs 1,200 a quintal, farmers are not reaping huge profits; but it is enough to keep them going,” he said.

Mr Raosaheb Deshmukh, a farmer from Ahmednagar, told Business Line that the inventory is causing losses, as the bulbs are drying up, losing up to 30 per cent of their weight, “If the ban is not lifted and farmers continue to agitate for another eight days, prices will increase dramatically,” he said.

> rahulw@thehindu.co.in

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