Trading agencies have criticised the proposal to decanalise onion exports. This, they say, will not only mean opening of the import floodgates which will hurt the domestic farm sector, but also mean a loss of revenue to canalising agencies and traders.
As a step towards liberalisation of the farm sector, the central government has included onion in the list of items to be decanalised, thus facilitating exports of the commodity.
Currently, onion is exported through various canalising agencies, such as the National Agricultural Cooperative Marketing Federation of India, the Maharastra State Agricultural Marketing Board, the Gujarat Agro Industries Corporation, the Spices Trading Corporation, the Karnataka State Cooperative Marketing Federation, the Andhra Pradesh State Trading Corporation and the National Consumers Cooperative Federation.
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While Nafed accounts for 30 to 40 per cent of onion exports, the rest is being exported by other canalising agencies.
Exports of onion is a very profitable venture and the government had earlier earned Rs 300 crore through exports of five lakh tonne of onions.
Last year, the government had allowed exports of 3.5 lakh tonne. This year, till date, the Centre has released two lakh tonne for exports.