The food ministry will soon be sending a note to the Cabinet Committee on Economic Affairs (CCEA) in this connection for approval. This decision is being taken in view of bumper onion production touching 4.8 million tonne and the farmer representatives from Karnataka has already pleaded for lifting the ban on exports. The exporters have already eyed markets in Malayasia, Singapore and Indonesia.

Addressing a news conference in Capital on Thursday, the minister further stated that while taking the decision to allow export of onions the ministry will assess and see that it the exports will not have any adverse effect on the availability and prices of the commodity in the domestic market. He categorically stated that the government's intention is to hold the price line of essential commodities undercheck. He said that at present the food ministry is not contemplating to suggest increasing the duty on imported edible oils. He said that despite the surge in imports of edible oils, the prices have come down only marginally. It needs to come down further in the interests of consumers, he said.

Barnala, however, admitted that the prices of some oilseeds has fallen below the level of minimum support prices, causing farmers to enter into distress sale. He said that Nafed has already been asked to intervene in market operation for oilseeds so that farmers are saved from making any distress sales.

He stated that the government is now not contemplating on the formulations of long-term sugar and fertiliser policy based on the recommendations of two expert committees till the election process is completed. He said that it is difficult to go for total decontrol of sugar prices as most of the statesbaring only two are opposed to the move suggested by the expert committee. Most of these states want the supply oflevy sugar through PDS should continue.

Barnala categorically dismissed the report appearing in a section of the press that the Centre is planning to stop the supply of sugar to Delhi as Delhi has no specific categorisation for below the poverty line (BPL) beneficiaries for PDS and sugar will only be supplied for BPL families. He clarified that there is no such move to supply sugar only for BPL families at special subsidies rates. Sugar will continued t be supplied to all beneficiaries under PDS.

He said that he was sorry to note that some members of Delhi government have been publicly projecting that the Centre intended stopping the supply of sugar through PDS in Delhi. He had already written to the Delhi food and civil supplies minister, Joganand Shastri that there is no decision the stop sugar supply to Delhi residents.

Meanwhile, consumer affairs secretary K Srinvasan said government would first have to ensure adequate domestic availability before considering exports. The consumer affairs ministryon Tuesday issued a notification bringing onion under essential commodities. This would help state governments to crack down on those hoarding the vegetable. Last year, governments were unable to do anything despite reports of hoarding as onion then did not fall under the essential commodities list. The government had discontinued onion exports from June in view of monsoon and its prices showing a tendency to rise.

Srinivasan said last year's bitter experience of onion prices spiralling would not recur this time as there were enough stocks. "We required 2-3 lakh tonnes of onion every month in the country. We have the required stocks with us," he said.

Besides, in case of shortage there was the option of importing onion under open general license (OGL) duty free. Onion import was allowed duty free under OGL last year after prices began to sky-rocket. The onion prices dealt a severe blow to the ruling BJP's prospects in the assembly election to three states. "There is also the third option of stategovernments cracking down on hoaders this time as onion has been included in the essential commodities list," Srinivasan added.

Last year, onion prices had risen sharply mainly in view of production shortfall. Onion production slid to 36 lakh tonnes last year from 43 lakh tonnes in 1997. This year, however, there has been a bumper crop of 48 lakh tonnes. While onion export was banned in October last during the price rise, it was partially lifted since January when its prices crashed to Rs 2-3 a kg in the primary producing centres of Maharashtra.

Since January, the government had allowed exports of 25,000 tonnes of onion every month. Onion exports make up a significant portion of vegetable exports, earning around Rs 225 crore annually. Before the ban was imposed on onion exports, 2.9 lakh tonnes were exported despite prices for exports being raised by us $ 150 a tonne to $ 475 to curb shipments.

Opposition had blamed government's failure to read the demand-supply situation and to stop exports as the mainreasons for the rise in its prices. Onion prices had also flared up in view of the crop being damaged by unseasonal rains in parts of Maharashtra and Gujarat.