The actual onion production during 1998-99 is estimated to be 43 lakh tonnes as against the agriculture ministry's earlier projection of 49 lakh tonnes, they said.

Government, in February had formally lifted the ban on onion exports imposed in October following unprecedented escalation in domestic prices due to a shortfall in production.

Government had restricted onion shipment to 25,000 tonnes every month till May 11, besides allowing an agency to be nominated by the Maharashtra government to canalise onion exports.

"The decision to not extend the permission for exports beyond May will ensure adequate domestic supply and prevent rise in prices," a food ministry official said.

Sources said the decision to not allowfurther export of onion was also influenced by the ensuing general election.

BJP had received a severe drubbing from the congress during the assembly elections to Delhi, Madhya Pradesh and Rajasthan, mainly on the failure of the former to keep the onion prices under check.

The decision to ban onion exports is understood to have been recommended by the consumers affairs ministry, which is directly responsible for ensuring fair prices of commodities to consumers.

When contacted an official of the National Cooperative Agricultural Marketing Federation (Nafed), country's sole onion export agency, said that the federation had not received any communication regarding extension of export.

"We have not received any communication from the commerce ministry as far as the quota for June is concerned," the official said on conditions of anonymity.

Country's onion production had declined to around 36 lakh tonnes during 1997-98 against 43 lakh tonnes in 1996-97 due to unseasonal rainfall in main growing areasof Maharashtra.

Onion exports make up a significant portion of vegetable exports, earning around Rs 240 crore during 1996-97.

In 1998, around 2.9 lakh tonnes were exported before the ban despite government raising prices of onion for exports by $150 a tonne to curb its shipment.

The food ministry official said since the commodity was included in the list of free import items, any spurt in prices could prompt private producers to take advantage of the margins and keep domestic prices under check.

While banning onion exports, government had allowed import of this commodity from all available sources duty-free under Open General License (OGL).