NAFED stopped issuing no-objection certificates (NOCs) to exporters today, seeking the Union Government's clarification on its role in the export of 75,000 tonnes of onions in the next three months.

Wholesale prices in the Lasalgaon marketyard, meanwhile, nosedived to Rs 250 per quintal today.

The Ministry of Commerce had, through a notification dated February 12, relaxed the export ban, permitting export of up to 75,000 tonnes in three months.

The notification said the agency designated by the Maharashtra Government or associate shippers would be allowed to export 25,000 tonnes of onions every month till May 1999. The notification had also named NAFED as a canalising agency without mentioning its export quota.

NAFED started issuing NOCs to exportersimmediately, assuming that the notification had set the export quota for the State Government-appointed agency and that NAFED was free to issue NOCs without any ceiling. Within a week, about 10,000 tonnes of onions were cleared for exports by NAFED.

However, the Customs refused the clear the consignments at Mumbai port, in the absence of specific orders from the Union Government authorising NAFED to issue NOCs.

NAFED officials then requested the Agriculture and Commerce ministries to clarify the issue, and in the meantime, at least allow exports of consignments already cleared.

Accordingly, the Agriculture Ministry requested the Customs to allow export of the consignments cleared by NAFED.

NAFED executive director S K Gumasta told The Indian Express that the agency had temporarily stopped exports, seeking some clarifications on its role in the export of 75,000 tonnes of onions. He said the agency had requested the Commerce Ministry, through the Agriculture Ministry, to throw light on theFebruary 12 notification and end the confusion.

Gumasta pointed out that 10,000 tonnes authorised for export by NAFED had been cleared, adding that NAFED would not issue any more NOCs unless the confusion was cleared.

With the new crop flooding onion markets, there was need to lift a ban on exports, he said.

Meanwhile, the Maharashtra Government is yet to appoint a canalising agency for exports till May 31. Exporters have stopped buying the commodity in Nashik's onion markets. Consequently, wholesale prices ranged from Rs 125 to Rs 301 per quintal, plummeting to an average of Rs 250 per quintal.

Onion markets are heading for a glut as the late Kharif crop has flooded the markets and the summer crop is due in April-May. Official agencies like the National Horticulture Research and Development Foundation has predicted a bumper crop of upto 47 lakh tonnes during 1998-99 (Kharif 1998 to Rabi 1999) as against the normal harvest of 42 lakh tonnes. Onion production during 1997-98 was only about 36 lakhtonnes.

The export of onions was banned in October 1998 when wholesale prices skyrocketed to Rs 4,000 per quintal. The ban was in force till January 31, 1999. However, on January 22, the Union Government relaxed the ban, allowing exports of the `Bangalore Rose' variety from Karnataka and the `Krishnapuram' variety grown in Andhra Pradesh. For other varieties and in the rest of the country, exports upto 3,000 tonnes were permitted.

When arrivals increased in the country's major onion marketyards, especially Lasalgaon, Chakan, Lonand and Pune in Maharashtra and Bhavnagar and Mahuva in Gujarat, prompting farmers to stage agitations for better prices, the Commerce Ministry further relaxed the ban on February 12. Traders, too, had boycotted auctions for 10 days from February 8 demanding lifting of the ban.