In a move that is sure to lead to heartburn among cooperative leaders of both NAFED and NCCF, the government has freed the export of onion. The beleaguered cooperative behemoth NAFED which is already reeling under debt, would lose further business, say experts.
Onion export was canalised in 1974 and the Nafed was the only canalising agency till 1 999. Later 12 state trading agencies were pressed into service along with the Nafed. Last week the govt of India issued a notification freeing onion export. The move has ended Nafed monopoly.
In the run up to the upcoming parliamentary poll, the govt. deemed it necessary to remove restrictions in order to avoid escalation of retail prices of the commodity. Only recently had the onion retail prices jumped to Rs 100 a kg. There are reports that the country would a bumper harvest of onion in 2014-15.
Experts say substantial export of onion would be needed in the next days to skirt around a sudden price crash on the home market.
NCCF which was fashioning to take over NAFED business as the latter went down the hill, was also hit by the decision.
