Business Standard

Govt to monitor onion prices regularly

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BS Reporter Mumbai

The government has decided to regularly monitor price variation in onion after lifting the two-week export ban yesterday.

Talking to reporters on the sidelines of the General Assembly of the International Organisation for Standardisation in New Delhi on Wednesday, food minister K V Thomas said, “We will regularly review the situation.”

He rebutted the criticism that the short-lived ban imposed by the government on onion exports was not a ‘panic’ decision. He said it was a ‘precautionary’ step, aimed at protecting domestic consumers.

“There was a panic decision last December. This time, we took the decision much in advance, in September,” Thomas said.

 

He was referring to last year’s bad experience, when onion prices had touched Rs 80-85 a kg in major retail markets across the country, following which the government had banned exports and imported large quantities from neighbouring Pakistan.

In the case of the latest ban, the decision was reviewed after massive farmer protests in the major growing states of Maharashtra, Gujarat and Karnataka. It was lifted on the basis of farmers' assurance that there would be no shortage of the kitchen staple in domestic markets, he added.

Meanwhile, the Bombay high court has disposed of a case filed by a city-based exporter against the government’s decision to ban exports. According to the petitioner, the court found no merit in it, following withdrawal of the ban by the government.

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First Published: Sep 22 2011 | 12:48 AM IST

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