No new entities will be allowed to export onion for the next 15 days as the National Agricultural Cooperative Marketing Federation of India (Nafed) has stopped giving any new no objection certificates for exporting onion for the next fortnight.
The move comes on the backdrop of the wholesale prices of onion rising by about 50% to Rs 23 a kg as on October 1, 2008.
?This in no sense means an export ban on onion. We are only suspending issuing NOC for any new shipments for onion exports for the next 15 days. We will then monitor the trend. The commerce ministry, which is the ministry concerned, would be informed about this,? said Alok Ranjan, managing director, Nafed. However, all existing exports contracts would be allowed to honour export commitments.
The inflation is at a 5-year low at 3.23 for the week ending September 15. However, rising onion prices could have an adverse impact on the populist sentiments as the government is readying for a possible mid-term poll.