Onion exports to resume from March

Market sources pointed out that the partial lifting of the ban on onion exports — by permitting shipment of only 75,000 tonnes in three months — was improper and that the ban should have been totally lifted. They fear that the limited quota of export might lead to lobbying by influential exporters and the possibilityof manipulation of permits.

The district wholesale markets have been flooded with the arrival of the new crop, and prices, which had skyrocketed to an unprecedented high of up to Rs 40 per kilo in October last year (prompting the Union Government to impose a ban on the export of the commodity), have plummeted to around Rs 2 per kilo.

The Lasalgaon and Pimpalgaon-Baswant markets remained closed today as traders took the day off to visiting the Mahasangh’s office in Pune and the marriage ceremony of a trader’s kin. The markets are likely to reopen tomorrow.

The Commerce Ministry had issued a notification on February 12, relaxing the ban to allow exports of 75,000 tonnes till May 31. The notification had mentioned that the agency designated by the Maharashtra Government would canalise the exports up to 25,000 tonnes per month, for three months. It had also mentioned the name of NAFED as a canalising agency without specifying any quota for it, which led to confusion.

The NAFED presumed that as thetraditional canalising agency for export of onions, it had been permitted to export the commodity without any ceiling on the quantum. NAFED cleared about 10,000 tonnes of exports within a week. However, the Customs department stopped loading, in absence of specific orders from the Union Government.

Subsequently, the consignments already cleared were shipped, but NAFED withdrew from the markets, seeking clarifications on its role in the exports. After the episode, the Maharashtra Government designated the Mahasangh to canalise 75,000 tonnes of exports and permits are being issued, ten days after the official notification of the Commerce Ministry. The delay by the Maharashtra Government in appointing a canalising agency has added to the prevailing confusion. The exports are now likely to resume from March 1.

Incidentally, the country produces about 42 lakh tonnes of onions per annum. Last year, it had dwindled to about 36 lakh tonnes. This year, a bumper harvest of about 47 lakh tonnes has been predicted byofficial agencies. About 10 to 12 per cent of the onions produced are exported to the Gulf, Malaysia, Singapore, Mauritius, Sri Lanka and the Seychelles. In 1997-98, the export quantum was 4.48 lakh tonnes, which dropped to 2.12 lakh tonnes during 1998-99.