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States call for India's onion export ban
India
Thursday 12 July 2007
With elections in two of its ruling states scheduled to be held next year, the ruling Congress party is not willing to take any chances with rising onion prices. After Delhi chief minister Sheila Dikshit had pitched for an immediate ban on export of the tuber, the government of Himachal Pradesh may demand for the same, sources told Sunday ET.
Significantly, in 1998, the BJP government lost elections when onion prices rose to 0,73 EUR per kg in the capital. Even in the latest round of polls in Punjab and Uttarakhand where the incumbent Congress governments lost, the price rise of essential commodities turned out to be a major election issue.
There has been an increase in prices of onion to the tune of 25 to 30% in the last fortnight - from 0,18EUR per kg it is selling at 0,25 and 0,27EUR per kg.
Delhi is anticipating a short supply of onions from Haryana and Rajasthan thanks to the inclement weather conditions there and the government now expects that the supply from Maharashtra would increase once there is a ban on onion export. Onion consumption in the capital is around 400 tons per day.
Significantly, in 1998, the BJP government lost elections when onion prices rose to 0,73 EUR per kg in the capital. Even in the latest round of polls in Punjab and Uttarakhand where the incumbent Congress governments lost, the price rise of essential commodities turned out to be a major election issue.
There has been an increase in prices of onion to the tune of 25 to 30% in the last fortnight - from 0,18EUR per kg it is selling at 0,25 and 0,27EUR per kg.
Delhi is anticipating a short supply of onions from Haryana and Rajasthan thanks to the inclement weather conditions there and the government now expects that the supply from Maharashtra would increase once there is a ban on onion export. Onion consumption in the capital is around 400 tons per day.
