Government lifts export ban on onion
Tuesday, 20 September 2011 18:18
Written by Nayanika
An empowered group of ministers (EGoM) on food on Tuesday decided to lift the ban on onions amid protests by growers in the key producing regions against the prohibition.
The government had earlier imposed a ban on onion export on September 9 to check spiralling prices of the bulb which touched Rs 25 a kg in retail in the national capital.
Earlier Sharad Pawar had pointed out there were problems in supply of onions 2-3 weeks back because of excess rains in the major producing regions of Maharashtra, Gujarat and Karnataka.
However, the minister noted the situation would improve due to prospects of late kharif bumper production of onion.
"Next crop is expected to be huge. In November, December and January there will be sufficient availability of onions in the markets," he said adding this could even lead to a situation where the prices could be lower than the production cost.
Referring to protests by Nashik onion farmers and traders, Pawar said this is "perhaps the first time the farmers are not bringing their produce to markets".
"This is benefiting farmers of Rajasthan as they are getting better price for their produce in Delhi...It is good opportunity for them," Pawar, who had made a trip to Jaipur last week, observed.
While the wholesale prices of the onions saw a dip by Rs 2-5 per kg in Delhi after ban on exports, the decision had triggered protests from farmers in the key producing regions of Maharashtra and Karnataka.
Farmers in Nashik district and Bangalore had refused to bring their produce to markets protesting the drop in their profit level due to ban on onion export.
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