An official spokesman said this follows the meeting of the cabinet committee on prices (CCP) which took stock of the shortage situation and rising prices in the capital.

The CCP meeting which was presided over by Finance Minister Yashwant Sinha took note of the request of the new Chief Minister of Delhi Sushma Swaraj to place onion under the Open General License (OGL) and allow duty free import. It decided accordingly.

Following the decision, onion would be allowed to be imported under open general licence and that too duty free. The CCP also decided to extend the ban on onion export till November end. Earlier, Prime Minister Atal Behari Vajpayee had directed banning of its exports till October end.

The spokesman said National Agricultural Federation (NAFED), has been directed to step up its procurement operations both in India and abroad andarrange for its distribution in the shortest possible time. At present it supplies 150 tonnes of onions a day at subsidised rates.

The meeting reviewed the prospects of the next onion crop and agricultural ministry informed that the new crop has already started arriving and supplies are expected to increase by October end.