Onion export ban lifted

The Empowered Group of Ministers, headed by finance minister Pranab Mukherjee, has decided to lift the ban on onion exports. Onions can be now exported subject to a minimum export price (MEP) of US $ 475 per tonne.

The government had imposed a ban on onion exports on September 9 to check its spiraling prices which touched Rs 25 a kg in retail The ban had an immediate impact on prices with wholesale prices dropping between Rs 2 to Rs 5 per kg The ban had sparked a protest in onion growing states of Maharashtra and Karnataka with farmers pressurizing the government to lift the ban Agriculture experts say the MEP of US $ 475 per tonne is very high

In a press statement issued in Delhi on Tuesday, commerce secretary Rahul Khullar said, “MEP will be reviewed every fortnight and a close watch would be kept on domestic arrivals, total exports, overall domestic availability and domestic prices.”

The government had imposed a ban on onion exports on September 9 to check its spiraling prices which touched Rs 25 a kg in retail. The argument was that the prices were rising as the onion crop in Maharashtra and parts of Karnataka were affected due to rains. The ban had an immediate impact on prices with wholesale prices dropping between Rs 2 to Rs 5 per kg.

Onion exports
Year	Onion Export from India (quantity in tonnes)	Export value in crores (Rs)
2004-05	944,000	817.49
2005-06	770,000	620.27
2006-07	1,161,000	1,135.42
2007-08	1,101,000	1,285.82
2008-09	1,671,000	1,816.14

 

Onion Production: state-wise area, production and productivity of onion (2009-10)
State	Area (In thousand hectares)	Production (In thousand tonnes )	Productivity (tonnes/ha)
Andhra Pradesh	26.00	244.00	9.38
Bihar	28.75	329.88	11.47
Gujarat	35.50	750.00	21.13
Karnataka	53.00	395.00	7.45
Madhya Pradesh	39.55	517.35	13.08
Maharashtra	111.65	2409.18	21.58
Odisha	60.45	522.47	8.64
Rajasthan	37.75	570.00	15.10
Tamil Nadu	30.50	320.50	10.51
Uttar Pradesh	69.50	778.75	11.21
Haryana	16.00	329.00	20.56
Others	45.50	563.00	12.37

The government’s move had sparked a protest in onion growing states of Maharashtra and Karnataka with farmers pressurizing the government to lift the ban.

Interestingly, agriculture experts say the MEP of US $ 475 per tonne is very high. A farm economist from Punjab Agricultural University said that competitors like China and Pakistan are selling onion at around US $ 170 to 180 per tonne in the international market and finding the price (US $ 475) which Centre has decided is really very difficult. He added that with lifting of export ban, farmers are not going to make much profit because when they will bring their bulks in the market, the prices are likely to fall.

“The export ban policy of India for cash crops like basmati rice, onion and sugar is faulty and farmers have to suffer because of it most of the times. There is no strategy or policy in India that governs export bans. Export ban is an arbitrary decision of the government,” he adds.

 

 

Web Specials Web Specials Web Specials Rahul Khullar Punjab Agricultural … Pranab Mukherjee Pakistan Onion export Minimum Export Price (… Maharashtra Karnataka Inflation Empowered Group of … China Agriculture