Last week, the central government, in a sudden move, imposed a hefty 40 per cent export duty on onions to improve supplies in the domestic market and cool down prices.
The step was taken after onion prices in major mandis in Maharashtra and elsewhere jumped by almost 75 per cent in a span of nearly 20 days due to low supplies amid firm demand.
Reports of damage to the kharif onion crop and its delayed harvest due to late sowing also triggered bullish sentiment.
The clampdown stunned the farmers and growers who, after suffering a series of setbacks with the