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The Government has decided not to ban export of onions at the moment, as shipments this year have been lower than last year. It also feels that the sharp rise in onion prices in the domestic market is mainly due to supply problems and not exports.
An inter-ministerial committee comprising senior officials from the Department of Commerce, the Agriculture Ministry, the Food Processing Ministry, the Consumer Affairs Ministry and Nafed has decided against an export ban after examining figures for production, export and prices.
“We have analysed the situation and feel that placing a ban on exports will not have a significant effect on domestic prices as exports are already lower than last year and international prices, too, are not ruling high,” Commerce Department Joint Secretary Asit Tripathy, who is heading the inter-ministerial committee, told Business Line.
Tripathy, however, said that monitoring prices and supplies was a continuous mechanism and the committee would be meeting periodically to review its decision.
The committee examined figures furnished by the National Horticulture Research and Development Foundation (NHRDF) and figures collated by the different ministries.
Retail prices of onion in Delhi have touched Rs 50/kg. There has been a 50 per cent rise in onion prices in the last one month in Delhi and Lasalgaon, according to the NHRDF.
The inter-ministerial committee believes that the rise in prices is largely due to supply constraints and a rise in input costs. “One of the reasons behind the price rise is that farmers and traders are releasing their supplies slowly since slightly lower production in 2012-13 has resulted in availability of storage space. If State Governments feel that hoarding may be happening, it is something they should look into,” another official said.
Rising input costs, especially fuel and transportation cost, too, is adding to the higher prices, the official added.
Both the Agriculture and Consumer Affairs ministries are strongly opposed to a ban on exports. Agriculture Minister Sharad Pawar has gone on record saying that he was not in favour of banning exports and the spurt in prices of onion was only a temporary phenomenon.
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