Kathmandu, May 6 -- India has lifted the ban on onion export after nearly five months but has imposed a minimum export price of $550 per tonne. The move, however, may increase the price sharply in the Nepali market.

In its notification issued on Saturday, the Directorate General of Foreign Trade of India said that the export policy for onions is amended from "prohibited" to "free", subject to the set minimum export price with immediate effect and until further orders.

With the floor price, Nepali traders say onion may cost more than Rs100 per kg, adding the transport costs and the value-added tax (VAT), the additional levy the Nepal government charges on imported vegetables, said Mohan Baniya, president of the Potato-Onion Import-Export...