India lifts ban on onion exports as prices dip

India has decided to lift ban on onion exports from January 1, as prices have fallen sharply in the last few weeks on expectations of a big crop.

Exports of all varieties of onion will be allowed, the ministry of commerce and industry said in a notification on Monday, according to Times of India.

The country had banned export of onions in September to preserve the domestic supplies after flooding in several states worsened seasonal shortages, leading to a spike in onion prices.

India is the world's biggest exporter of onions, a staple of South Asian cooking and has been the prime source of onion imports for Bangladesh. Nepal, Malaysia and Sri Lanka also rely on Indian shipments.