According to leading onion traders at `Kanda-Batata Bazar', a wholesale market for onion and potato at Navi Mumbai (Vashi), the government's decision not to allow further export has affected market sentiment very badly.

The exportable quality, which were traded at Rs 550 to Rs 600 per quintal are now quoted around Rs 430 to Rs 500 per quintal.

In February, the government had formally lifted the ban on onion exports imposed in October 1998, following unprecedented price escalation (Rs.60 per kg in retail markets) in domestic market due to production shortfall.

Scares availability of good exportable quality of onions may also affect its price level in coming days. According to leading onion traders, since last couple of weeks there is a kind of shortage in good quality of onions in the market.

At present, daily averagearrivals are near 100 to 150 truckloads of onions. But commission agents at Agriculture Produce Marketing Committee (APMC) says that most of the arrivals are found to be of inferior or `second' quality of onions, big sized and red coloured exportable onions quality remains very limited, hardly about 15 to 20 per cent of total arrivals.

Over the last couple of weeks good export demand has been observed in the market. The major inquiries are coming from importers of few Gulf countries, Singapore and Columbo where Indian onions enjoy good popularity.

In local wholesale market major arrivals are reported from main supplying centres Nasik and Pune apart from other producing centers like Junner, Ahmednagar, Chaken, Mansar, Haveli Taluka, Sangli, Kanpur etc.

On price front stable condition prevails in the market. Exportable quality of onion were gtraded in the range of Rs 45 to Rs 50/52 per 10 kg while low quality onions were quoted in the range of Rs 35 to Rs 40 per 10 kg for number one variety and Rs 20 toRs 30 for number two variety.

Interestingly the price difference between inferior and high quality of onion has been reduced to about Rs 10/20 per 10 kg which normally stays around Rs 30 to Rs 40 according to trade sources.

It is to be noted that export of onion make up about 90 per cent of the India's total vegetable export and earns Rs 30 crore worth of foreign currencies to national exchequers.

It is to be noted that about 17 states in India produces onions and India is the second largest producer of onions in the world. In term of quality also India produce best onions.