Increased output makes it ex-ECA

Onion exports are currently routed through designated agencies. The practice came into being in 1998, when production fell sharply and a ceiling of 0.7 million tonnes was imposed on exports. The crisis, in fact, led to the electoral defeat of the BJP in four states at a time it was leading the ruling coalition at the Centre.

When onion production improved substantially 5.451 million tonnes in 2002-03, the then ruling NDA coalition lifted the export restrictions. However, the designated channels remained. The removal of this limitation, say Union agriculture ministry sources, will allow 8216;8216;growers to get remunerative returns aligned to prevailing global prices8217;8217;.

Interestingly, though the total area under onion production in the country was 0.407 million ha in 2003-04 8212; down from 0.410 million ha in the previous year 8212; the total onion production increased by 0.18 per cent in the current year.