Onion exports fall on damage to crop and ban on shipment

India had exported 18.73 million tonne of onion in 2009-10 financial year.The sources attributed the dip in 2010-11 to damage to the crop due to unseasonal rains in main producing regions of Maharashtra and Gujarat in October-November last year.

It was also due to government imposing ban on its export since last week of December, 2010 in view of soaring prices of the bulb.

Onion prices had skyrocketed to R70-85 a kg in retail in the national capital and other parts of the country around last week of December 2010 forcing the government to take stern measures including first suspending its export and later prohibiting it completely.

Skyrocketing onion prices had pushed food inflation to a high level with opposition parties making hue and cry over the issue and forcing the UPA government on the back foot.

The ban continued for nearly two months before the government lifted it on February 17, 2011. Sources in the agri-cooperative Nafed, the nodal agency for contracting onion exports, said that the shipment started declining from middle of October last year when the unseasonal rains caused large scale damage to the crops in Nashik region of Maharashtra.

Prior to the ban, India had exported 11.58 lakh tonne of onions mainly to gulf countries, Sri Lanka and Malaysia during April-November

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