"Onion and milk are important.
We are closely observing the price trend and an appropriate action will follow,
whenever required," Commerce Secretary Rajeev Kher told reporters here.
He was replying to a question
whether the government is mulling any export restriction considering the
possibility of deficit monsoon and rising prices.
Onions are costlier by Rs.5/kg in
retail markets in most cities compared to last year prices. At present, onion
prices are hovering in the range Rs.20-25/kg in Delhi. It was Rs.17/kg in the
year-ago period.
"Our approach to agri exports
is broadly nuanced by the fact that agri exports as far as possible should be
open but clearly they are underlined by the attenuating factors of domestic
demand and supply," he said.
He said the government has reviewed
the situation and there is no cause of worry for wheat and rice at present.
Consumer Affairs Secretary Keshav
Desiraju had recently said that a call on re-imposing MEP would be taken by the
Cabinet Committee on Prices soon. At present, there is no minimum export price
(MEP) on onion.
Kher also said that the department
dealing with future trading too is watching the situation.
In September last year, retail onion
prices had shot to up Rs.100 per kg in many parts of the country. To rein in
prices, the government had imposed MEP on onion and the minimum export price
was raised several times to curb outbound shipments and boost domestic
supplies. The government even imported onion.
With domestic supplies improving and
wholesale prices crashing, the Centre had later done away with the MEP.
In the 2013-14, total onion exports
fell by over 25 per cent to 1.35 million tonnes as against 1.82 million tonnes
in the previous year.
According to the government research
body National Horticultural Research and Development Foundation (NHRDF), total
onion production is estimated to be higher by 15 per cent at 19.29 million
tonnes this year (July-June) from Rs.16.81 million tonnes a year ago.
In India, the world's second largest
onion producer after China, onion is grown in three seasons -- kharif (summer),
late kharif and rabi (winter).
Costlier vegetables, fruits and milk
pushed up retail inflation to three-month high of 8.59 per cent in April.
Inflation in milk was 11.42 per cent
in April as against 11.02 per cent in the previous month.
Amul and Mother Dairy, the two major
milk suppliers in Delhi had increased prices by Rs.2 a litre recently.
