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Nafed to stop onion exports on Chaturanan's directive
Our Political Bureau
MUMBAI, January 13: Union agriculture minister Chaturanan Mishra on Monday directed the National Agricultural Cooperative Marketing Federation of India Ltd (Nafed) to stop onion exports on account of its inadequate availability and price rise in the country.Confirming this to The Financial Express, Nafed chairman BM Sarin said the federation will not export onions till the situation is restored. The decision will benefit Indian consumers and farmers, he said.Sarin, along with Nafed managing director Brij Bhado, will meet chief minister Manohar Joshi on Wednesday to apprise him of the situation on onion prices and exports.Nafed's decision assumes importance as the ruling Shiv Sena in Maharashtra on Friday last had threatened agitation if it failed to discontinue onion exports immediately. The Sena delegation, led by former Food Corporation of India (FCI) director KL Gidwani, had raised the demand at a meeting with the Nafed regional director SK Gumastha. Gidwani said the decision was necessary as
the onion prices had reached Rs 25 per kg. He said in view of the centre's positive action, Sena supremo Bal Thackeray has directed to withdraw the call for agitation.Gidwani said during 1996-97, the country recorded an onion production of 40 lakh tonnes of which five lakh tonnes were exported. Of the five lakh tonnes, four lakh tonnes were exported by the western region comprising Maharashtra, Gujarat and Goa. He said the onions were exported at $610 a tonne to Malaysia, Sri Lanka, Singapore and the Gulf. Gidwani said the decision will help fulfil domestic demand, reduce the prices that have skyrocketed and increase onion availability in the state. Maharashtra is a major supplier of onions in the domestic market and outside. Nashik, Pune and Ahmednagar districts contribute substantially to the onion crop in the state.However, more than 70 per cent of the crop was severely damaged on account of abnormal rainfall in November and December last year. The resultant shortfall led to a rise in the onion prices
all over the country and has put an unbearable burden on the common man. Currently, Mahuwa and Bhavnagar in Gujarat are supplying onions to most of the market at the rate of Rs 1,100-1,500 per quintal, while the extra super quality is being quoted at Rs 2,000 a quintal.Onion prices were ruling at as low as Rs 600-800 a quintal during mid-November 1997 and gradually moved up to Rs 1,200 a quintal during end-November and December. Around mid-December, the prices ranged between Rs 1,200-1,600 a quintal. According to an onion wholesaler from Navi Mumbai, prices of onion are expected to decline by end-January when the famous "rangada" quality in Maharashtra starts arriving in the market.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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