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Ban on onion exports lifted partially

The government today lifted the ban on exports of potato and the 'rose' variety of onion and agreed to supply 3,000 metric tonnes of onion to Sri Lanka in view of a bumper crop of these commodities.

This decision was taken at a meeting of the Cabinet Committee on Prices on Thursday evening. Prime Minister Atal Bihari Vajpayee chaired the meeting.

Expressing satisfaction at the price situation in the country, the CCP also took note of the 'sharp decline' in the inflation rate and prices of various essential commodities, including oilseeds.

It was agreed to lift completely the ban on exports of potato while allowing the export of the 'rose' and 'Krishnapuram' varieties of onion.

The export of onion to Sri Lanka will be on a government-to-government basis.

Food Minister Surjit Singh Barnala told reporters after the meeting that the government is monitoring prices in the country and will take further steps after considering various factors, including production.

The CCP, which reviewed the prices amid reports of a glut in Maharashtra, also considered the availability of onion in the market.

It noted a steep fall in retail prices in the consuming centres, particularly Delhi, from a peak of Rs60 a kilogram three months ago to less than Rs8 a kilo at present.

The 'rose' onion has good demand in South-East Asia. Allowing export of onions will boost market sentiments and prices in the open market at the producing centres will improve slightly.

The price of onion in the country recorded a steep increase from mid-1998, when it touched a dizzy high of more than Rs50 a kilo in retail prices following a sharp fall in production, forcing the government to ban exports till January 31, 1999. Later, the government extended the ban till March 31, 1999.

With the arrival of the new crop, however, prices in the open market have plunged to a new low. And at producing centres, the price of onion has touched a low of Rs300 a quintal.

Later, an official spokesman said a bumper crop is expected in potato, oilseeds, onion and wheat and prices of vegetables have come down sharply in the recent past.

The arrival of the kharif (monsoon) crop has begun and sowing of the rabi (winter) crop is reported to be good.

The prime minister will convene a review meeting shortly, when better estimates of the crop situation will be available.

UNI

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