Onion import through Nafed to avert crisis

The Centre has decided to import onions through the National Agricultural Co-operative Marketing Federation of India (Nafed) following the sudden rise in onion prices.

Retail prices of onion are touching a high of Rs 18-25 a kg in some cities while in the wholesale markets it is costing between Rs 10 and Rs 15 a kg.

Meanwhile, to avert a 1998 Assembly elections-type situation, when the then BJP government lost power following high onion prices, the Delhi government has ordered subsidised sale of onion at all Mother Dairy outlets for Rs 11.25 per kg.

Usually, at this time of the year, onions cost about Rs 14-16 a kg in retail and Rs 6-8 a kg in wholesale.

Although there had not been a shortfall in area coverage and production of onion, an official said the market arrivals had been delayed due to heavy rains in Nashik. The high levels of humidity had also spoilt the stored onion, thereby reducing the availability in the markets, he added.

"Following delay in fresh arrivals, stockists are also seen hoarding the commodity and this, too, has pushed prices up," said Kanhaiya Lal, a Jaipur-based trader.

An official statement said Union Agriculture Minister Sharad Pawar held an inter-ministerial meeting to review the production, storage and availability of the vegetable.

The latest review showed significant rise in onion prices since October 17, when prices at Nashik and Azadpur markets jumped from Rs 1,000 for 100 kg to Rs 1,500."

The current prices at both the markets are about Rs 1,375 to Rs 1,400 for 100 kg.

"With the delayed Maharashtra crop (early Kharif) expected in mid-October, prices are likely to come to the earlier levels of Rs 15-16 a kg," said Dayanand, president of Jaipur's Potato-Onion Association.

However, an agriculture ministry official said the current stock was estimated at 18.10 lakh tonnes, enough to meet the domestic demand. The crop arrivals, he added, may be a bit lower due to rains across the country but the mandi stocks were enough to meet the demand.

Total production of onions in 2004-05 is estimated around 59.42 lakh tonnes, up from last year's 57 lakh tonnes.

The early kharif crop from Maharashtra will arrive by early October while the late kharif crop of Maharashtra, Rajasthan and Gujarat will hit the markets from early November. Rabi crop from Maharashtra and Rajasthan is expected around early March.

The early kharif crop from other regions has been usual this year. The arrivals began in July from Tamil Nadu and in late August from Andhra Pradesh and Karnataka. Tearjerker

Retail prices of onion at a high of Rs 18-25 per kg

Wholesale rate hovering around Rs 10-15 per kg

Delhi Govt orders subsidised sale at all Mother Dairy outlets for Rs 11.25 per kg