The Kurnool market yard was shut after some traders there tested positive for coronavirus.
To contain onion prices, the government had in November 2019 decided to import 1.2 lakh tonnes of onion through MMTC.
Commerce and Industry Minister Piyush Goyal said that the decision will help boost the income of farmers.
The lifting of ban would be effective once the Directorate General of Foreign Trade issues a notification in this regard.
The total area under food crops consisting of paddy, pulses, maize, wheat, jowar and millets constitutes 62 lakh ha in 2018-19, which is 79 pc of total cropped area.
Wholesale traders have requested the Union government to lift the ban on export which is in place since last year.
Krishnapuram onions are not used in the kitchen due to their size and pungency. The onions are imported by Thailand, Hong Kong, Malaysia, Sri Lanka and Singapore.
The onion farmers, who cultivated Krishnapuram (KP) variety of onions, are a happy lot with the Centre announcing that it would lift ban on export of this variety in a couple of days.
Supply of the produce has almost doubled due to arrival of the Kharif crops.
The central government is currently offering imported onions to state governments at an average landed cost of Rs 58/kg for further distribution in the retail market.
Consequently, production of onion is estimated to increase to 24.45 million tonne this year from 22.81 million tonnes in the 2018-19 crop year.
In all, 58 lakh quintals of onions reached the market in the past eight months.
The primary objective of incarceration is to reform people falling out with law.
Retail onion prices started to rise by September-end and touched a high of Rs 170 per kg in December, forcing the Union government to import onions from countries like Turkey and Egypt.
So far, Andhra Pradesh, Kerala, Telangana, Uttar Pradesh and West Bengal have procured onions from the centre, said Union Minister of Consumer Affairs, Food and Public Distribution Ram Vilas Paswan.