18/01/2020
Govt may lift ban on onion exports, remove stockholding restriction
Thursday, Jan 16
NEW DELHI – The government may soon lift ban on onion exports and remove restrictions on stockholding limits for wholesalers and retailers, Horticulture Commissioner B.N. Murthy said today.
"We may lift ban on exports and remove restrictions on stockholding limits on onions soon… (because) we see no problem in onion output this (rabi) season," Murthy said.
Higher crop would depress the prices as "there may be a problem of plenty" in March, when the harvesting of rabi crop will be in full swing, he said.
Favourable weather conditions, adequate water in major reservoirs and sufficient soil moisture would boost the rabi production, he said. Prices may fall in the next 15-20 days and return to normal soon, he added.
The restrictions imposed on stock holding and a ban on onion exports were among a slew of measures announced by the government to rein in the surge in prices of onions in Sep-Dec.
In the key wholesale market of Lasalgaon in Maharashtra price of onion eased to 3,460 rupees per 100 kg today from a high of 8,625 rupees on Dec 16.
Recently, in view of the falling prices and rising supply, representatives of farmer bodies in Maharashtra had requested the Centre to review the ban on export of onions and restrictions on stockholding limits.
On Jan 13, Lok Sabha legislator Bharati Pawar sent a letter to Minister of Agriculture & Farmers Welfare Narendra Singh Tomar asking him to lift the ban on export of onions. Pawar represents Dindori town in Nashik district, one of the largest onion-growing regions in India.
"Despite a significant rise in supply from the end of December, traders have been unable to store and bring onions to the market due to the restrictive stock-holding limits," said Suvarna Jagtap, chairman of Lasalgaon Agricultural Produced Market Committee. It may lead to losses for both farmers and traders in the future.
Food Minister Ram Vilas Paswan said the states are not willing to buy imported onions any more. This indicates that the Centre may not continue with the imports. In fact, the government is seen struggling to dispose the imported onions to states. Of around 36,000 imported onions, four states have picked up just 2,000 tn.
Trade officials said that some imported onions are of substandard quality and the imported yellow onions have no pungency or taste preferred by Indian consumers.
The Centre is offering the vegetable through National Agricultural Cooperative Marketing Federation of India, Mother Dairy Safal, and Kendriya Bhandar outlets at 49-58 rupees per kg in Delhi.
India has been importing the vegetable from Egypt, Afghanistan, Turkey and the Netherlands to contain rising prices over the past few months.
Heavy rains in key growing regions have damaged the crop, which led to a sharp spur in onion prices, traders said.