Decision to start onion exports after due consideration: Union Minister Danve

Union Minister of State Consumer Affairs, Food and Public Distribution Raosaheb Patil Danve on Wednesday said the decision to lift the ban on onion exports will be taken after considering the interests of both farmers and consumers.

Citing the fall in onion prices after the arrival of the new crop in wholesale markets, farmers and traders have sought the lifting of the ban. Talking to reporters in Madhya Pradesh's Indore city, Danve said, "Our government is trying to ensure that no injustice is done to both farmers and consumers. We will take a suitable decision (about onion export) keeping their interests in mind."

Farmers are right in seeking appropriate prices for their onions, but prices need to be controlled in such a way that consumers don't suffer, he said. However, Danve did not give any indication of when the government plans to lift the ban on onion exports. Speaking about the recent increase in inflation rates, he said, "It is true that prices of some commodities have gone up. The prices go up when there is a gap between demand and supply of goods."

The minister further clarified that there is no restriction on state governments if they wished to pay incentive to farmers in addition to the Center's declared minimum support price (MSP) while purchasing agricultural commodities. Danve informed that about 30 lakh tonnes of wheat would be produced during the current rabi season in Madhya Pradesh and the Centre has approved a plan to develop an additional wheat storage capacity of about 25 lakh tonnes in the state. The construction of new godowns will start soon under this scheme, he added.