The Centre has rebuffed Chief Minister Naveen Patnaik’s proposal to ban onion exports to arrest the skyrocketing onion prices and, instead, asked his Government to enhance production by drawing a long-term plan to stabilise onion prices.
Union Minister for Agriculture and Food Processing Industries Sharad Pawar, in a letter to Patnaik recently, said, “Historically, exports have accounted for about 10 per cent of the total production of onion in the country. This is true of this year as well. It is, therefore, not to assume that export causes volatility in onion prices. This Agriculture department has drawn up a long-term plan to increase the production and storage of onion. I shall be grateful if you could advise State horticulture mission to also take appropriate steps to increase onion production.”
Patnaik had shot off a letter to the Prime Minister urging him to immediately impose a temporary ban on exports of onions. Pawar has also given a factsheet to Patnaik which suggested that exports show a downward trend when domestic prices are high. As per the factsheet, 1.01 lakh tonnes, 0.22 lakh tonnes and 0.19 lakh tonnes of onion were exported in July, August and September this year compared to 1.62 lakh tonnes, 1.46 lakh tonnes and 1.51 lakh tonnes exported in the corresponding months last year. The minimum export price of $650 per tonne was fixed on onion exports with effect from August 14, 2013, which was further enhanced to $ 900 on September 18.
“Frequent changes in the export policy create a sense of insecurity in the international market and raise issues regarding the long-term credibility of India as a reliable exporter of agricultural produce,” said Pawar. Agricultural exports have grown from Rs 1.20 lakh crore in 2010-11 to Rs 2.32 lakh crore in 2012-13, he pointed out.