NEW DELHI/HYDERABAD: Be prepared to shell out more for onions soon. The Union government has decided to lift the ban on export of the commodity with immediate effect bowing to pressure from Maharashtra led by Sharad Pawar’s NCP.Due to this, commodity experts in Hyderabad said prices are likely to soar, or even double, from the Rs.16-20 band in the weeks to come.The government had banned the export of onion on Sept. 9 to check its spiralling prices which had touched Rs. 25 a kg in retail. But an empowered group of ministers (EGoM) headed by finance minister Pranab Mukherjee reversed that decision Tuesday succumbing to the pressure from Maharshtrian onion growers fronted by agriculture minister Pawar. The EGoM met Tuesday following a directive from the PMO to sort out differences between food and agriculture ministries. Those who attended the meeting included Sharad Pawar and food and consumer affairs minister K V Thomas. The farm ministry’s view prevailed. After the meeting, commerce secretary Rahul Khullar said a close watch would be kept on domestic arrivals, total exports, overall domestic availability and domestic prices of the commodity. “The decision is not final. It will be reviewed in 15 days,’’ he said.Experts fear that Andhra Pradesh is likely to be badly affected as it is a major purchaser of onions from Maharashtra. AP produces 3-4 lakh mt of onions in a year but consumes 5 lakh mt. “The central government has been gradually lifting the ban on export of essential commodities. It has already done so in the case of rice, sugar and cotton. Onions, however, are not produced on a scale commensurate for export,” said Sarampally Mallareddy of the Andhra Pradesh Rhythu Sangham. “This is likely to fuel food inflation further while only benefiting middlemen and not farmers.’’
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