``This is just the start of the lean season,'' the sources, who spoke on condition of anonymity, said, indicating that any decision on allowing exports would be taken only after taking into account the demand-supply situation once the kharif crop arrives in the market.

When contacted, agriculture secretary Bhaskar Barua told PTI that the government was watching the onion situation.

``We are watching the situation on the onion front. The cabinet will decide on exports after taking all aspects into consideration,'' he said.

Consumer affairs secretary K Srinvasan said government would first have to ensure adequate domestic availability before considering exports.

The consumer affairs ministry on Tuesday issued a notification bringing onion under essential commodities.

This would help stategovernments to crack down on those hoarding the vegetable. Last year, governments were unable to do anything despite reports of hoarding as onion then did not fall under the essential commodities list.

Government had discontinued onion exports from June in view of monsoon and its prices showing a tendency to rise.

Srinivasan said last year's bitter experience of onion prices spiralling would not recur this time as there were enough stocks.

``We required 2-3 lakh tonnes of onion every month in the country. We have the required stocks with us,'' he said.

Besides, in case of shortage there was the option of importing onion under open general license (OGL) duty free.

Onion import was allowed duty free under OGL last year after prices began to sky-rocket. The onion prices dealt a severe blow to the ruling BJP's prospects in the assembly election to three states.

``There is also the third option of state governments cracking down on hoarders this time as onion has been included in the essentialcommodities list,'' Srinivasan added.

Last year, onion prices had risen sharply mainly in view of production shortfall.

Onion production slid to 36 lakh tonnes last year from 43 lakh tonnes in 1997. This year, however, there has been a bumper crop of 48 lakh tonnes.

While onion export was banned in October last during the price rise, it was partially lifted since January when its prices crashed to Rs 2-3 a kg in the primary producing centres of Maharashtra.

Since January, government had allowed exports of 25,000 tonnes of onion every month.

Onion exports make up a significant portion of vegetable exports, earning around Rs 225 crore annually.

Before the ban was imposed on onion exports, 2.9 lakh tonnes were exported despite prices for exports being raised by $150 dollars a tonne to $475 to curb shipments.

Opposition had blamed government's failure to read the demand-supply situation and to stop exports as the main reasons for the rise in its prices.

Onion prices had also flared up in view ofthe crop being damaged by unseasonable rains in parts of Maharashtra and Gujarat.

Agriculture minister Sompal told reporters on Tuesday that the onion supply situation was satisfactory in view of the bumper crop.

Besides onion, there has been a bumper crop of potato also this year. Potato production this year is estimated to be 233 lakh tonnes against 176.5 lakh tonnes last year.