Agri ministry proposes export of all onion varieties

To provide a mid-way between the domestic supply and lifting ban on exports of onions after their prices crashed, the agriculture ministry has proposed opening up exports of all varieties of the bulb with a minimum export price of $600 per metric tonne.

The agriculture ministry has also sought permission to take all decisions on exports of onion, like fixing the export floor price through its nodal cooperative agency Nafed.

Officials said the proposals could be discussed at the next meeting of group of ministers on food.

Decision on onion exports was transferred to the Directorate General of Foreign Trade (DGFT) after prices spiked around end of December.

Onion prices had jumped to around over Rs 60 per kilogram in most parts of the country from around Rs 30 in just couple of days over reports of damage to standing crop in Maharashtra, the country’s largest onion-producing state.

Government first suspended all onion exports till January 15 before imposing an indefinite ban as prices kept rising. It also more than doubled the minimum export price to $1,200 per tonne from $525 for exporters who already had no objection certificates to cut down on exports. However, after onion prices crashed, particularly in wholesale markets, the government last week lifted ban on Rose and Krishnapuram varieties of onions, grown in Karnataka.

According to the agriculture ministry estimates, the total production of onions in 2010-11 was around 13 million tonnes, around 7.4% more than last year.

India has exported 11.5 lakh tonnes of onions in April to November period this year as compared to 18.73 lakh tonnes in the entire 2009-10 financial year. India exports onions mainly to West Asian countries, Sri Lanka and Bangladesh.

Meanwhile, officials said allowing exports with a floor price would allow low-priced onions consumed by the common man to be retained in the country.