Traders fear that onion crop all over the State would be affected by March 1999. The onion crop from Nasik and Gujarat are the last hope but more rains this month would mean damage of the remaining crop.

Kishore Bhanushali of SM Trading Company, a leading export house reasons, ``The government will also earn revenue on the import duty.'' Bhanushali claims that the National Agricultural Co-opertive Marketing Federation of India (NAFED) was not in favour of putting onions on the import OGL. The Federation feared that the onions would later be placed in the OGL for export too, leading to a revenue loss for them, he alleged.

However, NAFED officials reason that if there are no further rains this October, imports will be unnecessary. ``If there are no more rains, theonion supply should normalise in the city before Diwali.'' The market has been buoyant after over 700 tonnes of onions entered markets in Pune on Monday and Tuesday, they said.

NAFED has also decided to redistribute around 10,000 tonnes of the smaller Bangalore rose onions in the country. These onions, which measure around 25 to 30 mm in diameter, were previously being exported from Karnataka.

Meanwhile, in a major policy decision the Sena-BJP government on Tuesday, sought the permission of the Centre to import 10,000 tonnes of onion from Iran.

``We urged the Centre to grant us permission to import onion to tide over the crisis. We have deputed a special official to expedite our proposal,'' Food and Civil Supplies Minister Haribhau Bagde told The Indian Express.

Permission for import is likely to be granted immediately following a high-level meeting of Forest Minister Suresh Prabhu and Sena MP Madhukar Sarpotdar with Union Food and Civil Supplies Minister Surjeet Singh Barnala.

Senior ShivSena leader Kanhaiyalal Gidwani told The Indian Express that if a subsidy of Rs 4 crore was extended, it wouldn't be difficult to provide onions at Rs 10 per kg. ``As per the existing rates in Iran, the final landing cost of onion will be Rs 13.50 per kg. If government extends a small subsidy of Rs 3.50 kg, we will supply onion at the rate of Rs 10 per kg,'' Gidwani added.

Gidwani said the daily requirement of the metropolis is around 800 tonnes, while the daily arrival of onions is less than 150 tonnes.