Maharashtra against ban on onion exports

 

The Maharashtra government on Monday said it would take strict action against those involved in hoarding of onion. It also opposed any move to ban onion exports, in the wake of a surge in prices.

 

Speaking to Business Standard, state agriculture minister Radhakrishna Vikhe-Patil said, “The government will act tough against hoarders and speculators. We are constantly monitoring the situation. However, the state government is against any move to curb or ban onion exports, as the Centre shouldn't adopt a ‘switch-on, switch-off’ policy in this regard.” He added farmers were getting higher prices for the commodity.

Samir Bhujbal, Nationalist Congress Party member of Parliament from Nashik, agreed. He said farmers should be allowed to benefit from the prevailing price of Rs 1,500 a quintal. “Let the government take action against hoarders and speculators. But there should not be any attempt to put restrictions on onion exports,” he added.

A state agriculture department official said for 2012-13, onion production in Maharashtra was estimated at 2.95 million tonnes (mt), against 5.82 mt in 2011-12. The drop is largely due to the drought conditions prevailing across large parts of the state.

GRIM SCENARIO

• In 2012-13, onion production in Maharashtra is estimated at 2.95 mt
   
• Area under onion cultivation has fallen to 0.18 million hectares
   
• NCAER estimates India's onion output to fall 20% in 2012-13
   
• The state has opposed any move to ban onion exports
   
• The prevailing price of onion is Rs 1,500 a quintal

In 2012-13, the area under onion cultivation has fallen to 0.18 million hectares, from 0.38 million hectares in 2011-12.

According to a recent study by the Small Farmers' Agribusiness Consortium, the onion crop in Maharashtra and Karnataka, two leading producers, could decline 35 per cent and 25 per cent, respectively, compared to the previous year, owing to water shortage and delay in the monsoons last year.

For 2012-13, the National Council of Applied Economic Research (NCAER) has estimated India’s onion output to drop 20 per cent compared to 16.34 mt in 2011-12. NCAER, however, said demand for Indian onions would remain high.

R P Gupta, director, National Horticulture Research & Development Foundation, said in December, onion exports had declined 40-50 per cent.

Prices moderate
The arrival of onions from mandis in Mahua and Bhavnagar in Gujarat has resulted in moderation in onion prices. At the Lasalgaon and Pimpalgaon mandis in Nashik district, onion prices today fell to Rs 16-17 a kg, compared with Rs 19-20 a kg last week.