Government on Tuesday lifted ban on export of onions. The ban was imposed on

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September 9 when onion prices skyrocketed in the country. Centre has also extended the stock limit for sugar for two months till November 30. Stock limit on edible oil and pulses has been extended for 12 months till September 30, 2012 from six months earlier.

“Ban on onion export has been lifted,” food minister KV Thomas told reporters in the capital after a meeting of empowered group of ministers (eGoM). The eGoM fixed minimum export price for onion at $475 per tonne.

“The price (minimum export price) would be reviewed depending on the situation,” Thomas added.

The ban was imposed when onion prices clocked more than Rs 25-30 per kg in New Delhi. However, farmers protested the ban saying it was a brief price rise that is expected to cool down when new harvested crop come to market in October.

Currently, every 100 kg of onion costs Rs 1,500 in Nashik, which is a major trading hub of the country. Farmers in several parts of the country stopped selling onion in the wholesale market as prices drop after the export ban.

“The minimum export price will be reviewed every fortnight and a close watch would be kept on domestic arrivals, total exports, overall domestic availability and domestic prices,” commerce secretary Rahul Khullar said in a statement on Tuesday.

Earlier, Madhukar Pichad, chief of NCP in Maharashtra, wrote to PM Manmohan Singh and commerce minister Anand Sharma asking to lift the ban on oinion export.