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Govt lifts ban on onion exports, sets ceiling of 25,000t p.m.

The government today lifted the ban on export of onions with immediate effect to arrest the sharp decline in prices in the open market specially in the producing areas.

This decision was taken at a specially convened Cabinet meeting tonight, chaired by Home Minister L K Advani.

Advani said after the 90-minute meeting that the ban has been lifted in view of good onion production in Maharashtra and Karnataka.

The Cabinet at its earlier meeting last month had decided to lift partial ban on export of Karnataka variety of onion, which had good demand in southeast Asian markets.

Cabinet Secretary Prabhat Kumar said that the government had decided to impose a ceiling of 25,000 tonnes per month for the next three months to ensure stabilisation of onion prices. A total quantity of 75,000 tonnes would be exported in next three months, he added.

The government would review the price situation after two months, Kumar said.

Onion prices shot up to Rs 60 per kg in Delhi during last September/October, forcing the government to impose a blanket ban on exports. First, the government had imposed a ban till January 31, 1999 but extended it till March 31, as the prices in December and early January were still ruling high.

When the new crop arrived in the market in the second week of January, prices crashed sharply and farmers both in Karnataka and Maharashtra launched agitations. They demanded lifting of the ban on exports.

Kumar said the export would be allowed through an agency designated by the Union government.

UNI

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