Union Commerce and Industry Minister Anand Sharma on Friday said the government was actively considering a request from Maharashtra Chief Minister Prithviraj Chavan to lift the ban on export of onions whose prices crashed last week triggering farmers' protest.
In a related development, the government on Friday allowed the export of three varieties of non-basmati rice grown in the southern States in anticipation of bumper crop production this year.
“The government is giving its full attention at the highest level, to what has been said by the Maharashtra Chief Minister and the Union Agriculture Minister, Sharad Pawar,” Mr. Sharma told reporters here.
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Facing protests from growers in Nashik, Mr. Chavan spoke to Mr. Sharma on Thursday night, seeking reversal of the decision to ban onion exports. Mr. Pawar, who is also a member of the Empowered Group of Ministers (EGoM) on Food, also sought lifting of the ban and restrictions on export of onion and sugar, respectively.
Mr. Sharma said the EGoM would review the matter. The panel, headed by Finance Minister Pranab Mukherjee had allowed two varieties of onions for exports. Onion prices, which touched Rs. 85 a kg at the retail level, had fallen to as low as Rs.4-5 a kg in the markets of Maharashtra. It was now selling at Rs. 20-25 a kg.
The Minister said, “Last night [Thursday night], Mr. Chauhan spoke to me and subsequently wrote to us. I immediately discussed it with Mr. Mukherjee, who is the chairman of the EGoM,” Mr. Sharma said. He, however, felt there were many steps to help farmers. “There are State and national federations, which can step in to purchase at a better price so that farmers do not suffer.”
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Similarly, partially lifting a three-year-old ban, the government had permitted exports of ‘Ponni Samba' and ‘Matta' varieties of non-basmati rice, subject to a cap of 25,000 tonnes each, while shipments of ‘Sona Masuri' were permitted with a cap of 1,00,000 tonnes, the Directorate General of Foreign Trade said in a notification.
Exemptions from the export ban would also be contingent upon the value of shipments exceeding $850 a tonne. These varieties are grown in Tamil Nadu, Kerala, Andhra Pradesh and Karnataka.