Govt rolls back ban onion exports

Nearly two weeks after prohibiting onion exports, the government today lifted the ban, forced by the farmers' stir in Maharashtra--the main producing region.

"The Empowered Group of Ministers (EGoM) of Food reviewed the situation. We took a decision to revoke the ban on exports of onion," Food Minister KV Thomas told reporters here after a meeting of the high-powered ministerial group headed by Finance Minister Pranab Mukherjee.

The ministerial panel, however, decided to fix the minimum export price (MEP) of onion at a high level of $475 a tonne as a precautionary measure to discourage exports. The MEP was same before the ban.

"MEP will be reviewed every fortnight," Commerce Secretary Rahul Khullar said.

According to the sources, Thomas in today's review  is believed to have raised the issue of traders withholding stocks of onion in Maharashtra.

The government imposed the ban on exports on September 9 to boost domestic supply and control retail prices, which had gone up to Rs 25 per kg from Rs15 a kg in short span of time.

Restrictions on exports had an immediate impact on the wholesale markets in the national capital as prices dropped by Rs2-5 per kg.

But the decision triggered protests by farmers in major producing regions of Maharashtra and Karnataka and they decided to stop carting their produce to the markets. Farmers feared the ban on exports will lead to a decline in domestic wholesale prices which in turn will cut into their income.

Political parties in Maharashtra had come out in support of agitating farmers. A delegation from Maharashtra led by state Agriculture Minister Radhakrishan Vikhe Patil had met Mukherjee, Thomas and Agriculture Minister Sharad Pawar to demand lifting of the ban.

Welcoming the the lifting of ban, farmers of Maharashtra and Karnataka said "it is a timely decision".

"Farmers, who have been boycotting markets since imposition of the ban, will now start carting their produce to APMC mandis from tomorrow," Dilip Rao Bankar, Chairman, APMC, Pimpalgaon (Nashik) told PTI over phone.

Bankar said according to a conservative estimate farmers incurred a loss of around Rs150 crore during nearly a fortnight long prohibition on onion exports.

Farmers and traders of Bangalore were also welcomed lifting of the ban.

India exports onion mainly to Malaysia, Sri Lanka, Dubai, Pakistan and Bangladesh.