But, the decision had no no immediate effect in the national capital.
"Though onion traders have welcomed the decision (to defreeze ban from onion export)...there has been no adverse impact on the supply of onion and its rates," Onion Merchants Association (Azadpur) General Secretary Rajendra Sharma said.
Onion sold at a rate of Rs 5-13 per kg in Azadpur (Asia's biggest wholesale fruits & vegetables market) today remained unchanged from yesterday's level, Sharma added.
But, the government announcement to open onion exports had some impact in Nashik and Pune districts of Maharashtra, the major producing region of the kitchen staple, according to a top official from National Horticulture Research Development Foundation (NHRDF), an arm of co-operative Nafed.
Supply of the important veggie dwindled in the APMC (Agricultural Produce Market Committee) markets in Lasalgaon, Pimpalgaon, Mahua in Gujarat and Pune and prices climbed marginally today, NHRDF Nashik Director R K Gupta told PTI.
Supplies in Lasalgaon dropped to 22,000 quintals from 25,095 quintals yesterday, he added.
Similarly, the arrival fell to 29,294 quintals at Mahua in Gujarat compared to 43,735 quintals yesterday, Gupta said.
Likewise, in Pimpalgaon 10,000 quintals of onions entered today against 15,610 quintals yesterday while in Pune it was 25,505 quintals vis-a-vis 29,430 quintals yesterday, he added.
Correspondingly, the wholesale prices of the bulb also saw a little rise in these markets.
Wholesale prices of onions in Lasalgaon today stood at Rs 1,012 per quintal against Rs 1000/quintal yesterday, Gupta said.
Similarly, in Mahua it was Rs 1070 per quintal against Rs 985/quintal yesterday and Rs 1100 per quintal in Pune vis-a-vis Rs 1000 yesterday, the NHRDF official said.
Gupta said a "clear cut" impact of the decision would be visible from next week after issuance of notification lifting ban on onion exports.
Following farmers' protest over crash in domestic prices within two months of touching Rs 80 a kg, a high level ministerial team on Food headed by Finance minister Pranab Mukherjee yesterday decided to lift the export ban on the kitchen staple.
But, as a precautionary measure against possibility of prices shooting again, they decided to allow shipments of onions only at a Minimum Export Price (MEP) of USD 600 (about Rs 28,000) per tonne.