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Govt may export onions to check fall in prices

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Monica GuptaRuchi Ahuja New Delhi
Last Updated : Feb 14 2013 | 7:29 PM IST
In order to bail out farmers reeling under the steep fall of onion prices in Maharashtra, the government is considering exporting the commodity to neighbouring countries such as Pakistan, Nepal, Bangladesh and Singapore.
 
Agriculture Minister Sharad Pawar has asked Commerce and Industry Minister Kamal Nath to explore the possibility of exports through canalising agencies such the National Agricultural Cooperative Marketing Federation of India (Nafed). The two ministers discussed the issue on Thursday.
 
Confirming the development, Alok Ranjan, managing director of Nafed, told Business Standard that the government had asked the agency to identify more export destinations. "We have also been asked to submit details on any plausible government assistance or concession," he said.
 
Officials said that onion is part of the list of items identified by Pakistan for imports from India. While the trade in positive items is not allowed through the land route, Pakistan had last year allowed India to import the commodity over land through Wagah and Attari.
 
At present, wholesale market price at Nashik is Rs 2.5 a kg, which is normally at Rs 4 a kg. At Azadpur (Delhi) it is Rs 4 (normally Rs 5.5 a kg). Prices in tend to be slightly lower, it being the major producing state in the country.
 
India's onion exports in 2005-06 was about 7.75 lakh tonne, compared with 9.41 lakh tonne the previous year. The country has three crops of onion in a year "� early kharif, late kharif and rabi. Total production in 2004-05 was estimated at around 59.42 lakh tonne, up from the previous year's 57 lakh tonne.
 
The agriculture ministry has already set up a taskforce to formulate an onion policy. The taskforce, set up in February this year is expected to submit its report soon. Besides working towards a scenario where shortage of the commodity can be avoided, the committee will look into various issues including production vis-à-vis demand, yield, storage, and procurement.
 
"The government may even consider special warehousing for the commodity, considering its perishable nature," an official said.

 
 

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First Published: Apr 15 2006 | 12:00 AM IST

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