Agriculture minister Sharad Pawar has initiated a move to remove onions from the purview of the Essential Commodities Act to allow its free movement and export. At present, onion exports were canalised through NAFED and some other designated agencies. | |
| Curbs were in place on the movement and export of onions to keep domestic prices in check. This was keeping prices artificially depressed and depriving growers of good returns. |
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| Pawar's move followed reports of growing onion stockpiles in onion-growing belts in Rajasthan. This had led to decline in prices. |
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| Any decision on removal of onion from the essential items' list would have to be taken at the Cabinet level, sources pointed out. |
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| At present, onions could be exported but only after obtaining a "no objection certificates" from canalising agencies before consignments could be moved. |
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| Over 8 lakh tonnes of onions were exported in the last fiscal. In the current year, exports have already touched one lakh tonne. |
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| The list of the commodities covered by the essential commodities Act was reviewed by the high-powered price monitoring board in January 2004. |
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| The board had decided to keep onions in the list as it was then in short supply. It had recommend strict price monitoring. |
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| However, the situation changed after the huge rabi harvest. Onion stocks started mounting thereafter, hammering prices. The agriculture ministry felt curbs on onion trade were no longer needed. |
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