Onion farmers on Friday boycotted auctions at Lasalgaon and Pimpalgaon Agricultural Produce Marketing Committee (APMC) yards in Maharashtra, protesting against the Centre's decision to ban exports. However, APMC yards in other parts of the State functioned normally.

Farmers got agitated since onion prices have dropped by Rs 200 a quintal since Wednesday. First, the move to raise the minimum export price of onion to $475 a tonne caused a dent, and then on Thursday, the Centre announced a ban on exports late in the evening.

However, the ban will be reviewed every fortnight.

In Maharashtra, onion prices are currently ruling between Rs 800 and Rs 1,100 a quintal based on quality. In Pimpalgaon, the modal price or the rate at which most trades took place was down at Rs 980 against Rs 1,121 last week. In Lasalgaon APMC, Asia's largest onion market, prices were down to Rs 1,000 from Rs 1,170.

“There is a change in the mindset of traders. Until the ban was imposed, there was buying pressure. But with the ban, the market solely depends on domestic demand,” said Mr Rupesh Jaju, Director at Nashik-based United Pacific Agro Pvt Ltd.

Trading sources said had the ban not been imposed, prices could have increased to around Rs 1,500 a quintal.

The Government's action this time is seen to be pro-active, after prices scaled record high of Rs 100 a kg in retail markets last year. The surge began the same time last year.

“Prices were up since the kharif crop will be lower. There is also the problem of quality with arrivals,” said Mr Jaju.

With demand waning, prices could drop by another Rs 150 a quintal, according to sources.

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