Scanner on onion hoarders

Imports from Afghanistan reach North India, but shipments seem insufficient in West

With onion prices showing little signs of moderation, the Centre on Monday decided to crack the whip on hoarders and black marketers. The government will form joint surveillance teams of Departmental Consumer Affairs and Departmental Agriculture to inspect onion distribution centres in Delhi to check the commodity’s quality, quantity and price.

Wholesale onion price at Lasalgaon in Maharashtra (Asia's largest onion market) has touched Rs 60 a kg, against Rs 15-16 a kg in the year-ago period, while retail onion prices have risen to Rs 80 a kg in many parts of the country.

The government has also decided to expedite the import of 10,000 tonnes of onions and directed all state governments to take strict action against those who have illegally stored the commodity to take advantage of the sudden spike in prices.

“It has also been decided that a core team consisting of officials of Consumer Affairs, Agriculture, MMTC, SFAC (Small Farmers’ Agri-Business Consortium) and NAFED would be video-conferencing with the states, once the tenders were opened to ascertain their requirements and also the modalities of reaching the stocks to the states and the mechanism of retail distribution,” said an official statement released after Food and Consumer Affairs Minister Ramvilas Paswan chaired a high-level meeting on Monday.

The secretary in the department of consumer affairs also held a meeting with officials from the departments of agriculture, commerce, the Government of Delhi as well as representatives of SFAC, NAFED and Mother Dairy, among others, to review the availability and price situation of onion.

“We have written to the Maharasthra chief secretary expressing concern over the rising prices. We have asked to send officials to Lasalgaon to check onion availability and take adequate measures against hoarders,” Consumer Affairs Secretary C Vishwanath told reporters. A similar direction has been issued to other state governments as well.

Paswan also blamed the Delhi government for not taking adequate action against hoarders . “Last year, adequate measures were taken against hoarders but this time the state government has not taken enough steps.”

When onion prices had risen during the 2014 monsoon season, when Delhi was under President’s rule, being governed by Lieutenant Governor Najeeb Jung.

Terming the inflation in onion prices a temporary phenomenon, Paswan said there is no shortage of the commodity but hoarders are trying to take advantage of the situation.

“There is a production shortfall of only 500,000 tonnes. Hoarders get active when there is production fall. The state governments should take action against hoarders to control prices,” Paswan said told reporters.

Highlighting the measures taken to boost domestic onion supply, the minister said MMTC has floated a tender to import 10,000 tonnes of onion and the tender will be opened on August 27.

The minimum export price of onion has also been increased to $700 a tonne from $425 a tonne to restrict exports and the state government has been asked to impose stock-holding limits on traders, he added.

Total onion production is estimated at 18.9 million tonnes in 2014-15 crop year (July-June), slightly lower than 19.4 million tonnes a year ago.

That apart, SFAC and Nafed are supplying onions at subsidised rate in Delhi markets below Rs 40 a kg.

Meanwhile, reports from Mumbai said onion prices might rise by another 10 per cent in the next few days due to tight supplies.

“The situation is going to be more critical in future and we expect the price will go up by another 10 per cent in the coming days because the current crop, which is expected to hit the market next month, might be affected due to scanty rainfall,” a PTI report quoted Bombay APMC director Ashok Valunj as saying.

Onions imported from Pakistan are already in the market and the lot from Egypt would hit the market next week, he said, adding this would not help much in bringing down the prices.

“The 100-200 containers, 30 tonnes each, of onions imported will be distributed in the entire country. Mumbai itself needs 80-100 trucks daily, each containing 12 tonnes. Moreover, our domestic stock is also depleting fast. So imports will not be able to bring down the prices," he said.

In Chandigarh, though, onions imported from Afghanistan has picked up pace, which could ease the supply crunch in northern India in the next few days.

“Against 2-4 trucks a day initially, now minimum 6-7 trucks carrying onion are crossing over to India via Attari-Wagah land route (in Punjab) from Afghanistan,” said Amritsar-based trader Anil Mehra. Traders said the supply of onions from Afghanistan might increase in the days to come.

Uttarakhand Chief Minister Harish Rawat said on Monday that prices could be brought down to Rs 60 a kg through public distribution system and wholesale markets.