Ban on onion exports relaxed

NEW DELHI, JAN 21: The Union Cabinet approved lifting of the ban on exports of potatoes and allowed exports of Bangalore rose onion and o...

NEW DELHI, JAN 21: The Union Cabinet approved lifting of the ban on exports of potatoes and allowed exports of Bangalore rose onion and onions of Krishnapuram variety.

The decision to lift the ban on potatoes and relax curbs on onion exports was taken by the Prime minister Atal Bihari Vajpayee after the cabinet committee on prices headed by him reviewed the availability of essential commodities and the general price situation.

Government had imposed the ban on export of onions and potatoes in October when the prices of these vegetables touched unprecedented levels in the wake of poor supplies triggered by production shortfall. The ban was later extended to the end of January.

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The Union agriculture ministry recommended export of Bangalore Rose onions and Krishnapuram onions after reviewing the production prospects of these crops. It also estimated that due to bumper crop prospects there may be a glut in the market, adversely affecting the farmers.

The Cabinet has also allowed export of 3000 tonnes ofonions to Sri Lanka on a government-to-government basis.

Centre expects a good harvest was expected in onion and wheat and a bumper crop in potatoes and oilseeds.

Expressing satisfaction over the wholesale price index dipping to around five per cent, the Cabinet Committee on Prices decided to meet again next week under the chairmanship of the Prime Minister to review the price and supply situation of essential commodities further.