The Hindu : Front Page : Centre to import onions from Pakistan, China

Online edition of India's National Newspaper
Tuesday, Oct 25, 2005

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Centre to import onions from Pakistan, China

Gargi Parsai

They will be available at an average wholesale price of Rs. 16 per kg

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NEW DELHI: The Centre will import onions from Pakistan and China to tide over the present crisis of short supply in the market. The imported onions will be available from later this week and at an average wholesale price of Rs. 16 per kg against Rs. 18 per kg at present. Onions were sold at Rs. 20 per kg at the Government's Mother Dairy outlet here on Monday but were much higher at retail outlets.

The National Agriculture Cooperative Marketing Federation of India (NAFED) has contracted 2,000 tonnes of onion from China at an estimated cost of $240 per quintal. The lot is expected to reach the Mumbai port in two weeks.

NAFED has also contracted 650 tonnes from Pakistan at an estimated cost of $260 per quintal cost and freight. Of this, about 150 tonnes shall be available in Mumbai within two days, highly-placed sources said. Pakistan exporters have doubled the price of onion as soon as it became known that India was buying from the international market.

Apart from this, NAFED will procure 100 tonnes per day from Rajasthan to supply government outlets in a bid to bring down prices in the retail market. Inflow from the State is 8,800 quintals and is likely to increase to 14,000 quintals next week with late kharif arrivals.

Managing-Director, NAFED, Alok Ranjan, on Monday said the price of onion had dropped from Rs. 13.50 per kg in the Azadpur Mandi in Delhi last week to Rs. 11.85 per kg. Consumers, however, failed to see the impact of this decline in the retail outlets where onion prices continued to rule between Rs. 20 to Rs. 25 per kg.

Rain affects production

Since last month, onion prices have spiralled from Rs. 8 per kg to Rs. 15 per kg. There has been a seven per cent drop in production, with the rains and floods in Maharashtra and Karnataka having a major impact. Moreover, to ensure presence in the international market, onion export has continued through the year. However, four lakh tonnes have been exported against 9.5 lakh tonnes last year.

Government sources admit the crisis has blown out of proportion due to hoarding by traders for speculation during the festival season.

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