Onion prices are rising steeply and suddenly but the government says this is not linked to the exports that have been in place since long. They rather attributed the reasons to be linked to the unreasonable rains that closed the local marts adding that any spurt in the price was temporary.

Commerce minister Anand Sharma asserted that there was no shortage of the vegetable in the nation, talking in Rajya Sabha during Question hour. He confirmed that only the surplus of the produce is allowed to exports. Currently India produces a total of 17 million tons, which is two million tons more than the demand in the nation.

"The export policy of agricultural produce depends on various factors including availability of surplus over and above the requirement of buffer stock including strategic reserves," he said. Presently, 84% of the produce is domestically consumed and 6% is buffer stock while the rest 7% is exported.

He reasoned that exports were mandatory saying that there were a few sovereign agreements for the export. He also said that we would be losing market space in the international market if we don't export our onions.

Prices have gone up since Jan 22 and have stabilized in a fortnight, he told. The wholesale price in Azadpur Mandi in Delhi on March 11 was Rs 13.10 per kg. But with intermediaries who add to the cost of the onions, they could be retailing for Rs 10-11 more per kg.

(AW- Anil)