India has removed the minimum export price (MEP) on onions aiming to restrict the crash in wholesale onion prices.
The Times of India said country's commerce ministry decided to remove the MEP on onions as the average wholesale onion prices dropped below Rs 2,000 per quintal.
Rising supply had caused the wholesale price of onions to decrease by Rs 15-18 to Rs 20-25 per kg.
India had raised the MEP from $430 to $850 per tonne last November. The price of onions was Rs 50-60 per kg on the Indian market at the time.
The MEP was revised down to $700 per tonne on Jan 19 after prices began to fall.
Estimating a Rs 30 per kg internal price of Indian onions, Bangladeshi traders can import onions at $470 per tonne.
The announcement has yet to affect the Bangladeshi market, where Indian onions were selling for Tk 50-60 per kg.