The Empowered group of ministers (EGoM) on food has decided to lift the ban on onion exports, bowing to pressure from agriculture minister Sharad Pawar.

Apart from the NCP supremo, Maharashtra chief minister Prithviraj Chavan had also asked the Centre to allow onion exports, citing protests by farmers across the state.

The decision was taken at the EGoM meeting chaired by finance minister Pranab Mukherjee in New Delhi on Tuesday. Keeping in mind the domestic situation, the government decided to review the decision on a weekly basis. Mukherjee and home minister P. Chidambaram, also a member of the EGoM, had visited Maharashtra recently.

"The EGoM has decided to lift the ban on onion exports. We will review the situation if there's any fluctuation in the domestic prices," food minister K.V. Thomas said.

The meeting was also attended by Pawar and planning commission deputy chairman M.S. Ahluwalia. The government had banned onion exports to check its spiralling prices which touched Rs 25 a kg in retail. The minimum export price (MEP) of onions has been fixed at $475 (Rs 22,671) per tonne.

Sources said Chidambaram and Thomas raised certain issues before the panel. Chidambaram reportedly told the EGoM to ensure that onion is not hoarded by traders to artificially inflate the retail prices.

Thomas, providing pictures, argued that at least eight lakh tonnes of onion were kept by traders in various storages across Maharashtra.

Sources said the government was trying to placate the onion farmers, but was eager to see that retail prices do not increase ahead of the festival season.

Retail onion prices had touched Rs 100 per kg at various markets last year.