The Indian Agro Produce Exporters Chamber of Commerce (IAPECC) is up in arms against the commerce ministry for granting licences to a few government-owned canalised agencies to import up to 50,000 tonnes of fresh garlic each.
With an expected shortfall of over 60,000 tonnes due to delayed rainfall this year and a quota of 40,000-50,000 tonnes approximately released through imports, the association fears artificial high prices will hurt the consumer interest.
Garlic is on the negative import list as a means to protect farmers. Despite this, there is always a shortfall and some produce is imported.
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"But with a few agencies being allotted a quota each, they will consort with private players and sell the imported garlic at high prices," said IAPECC in a press release.
In a letter addressed to the Director-General of Foreign Trade (DGFT), the IAPECC cited past instances when a few agencies favoured with import licence entered into a buyback arrangement with private traders.
This would make the product expensive for the consumer instead of acting as a medium to keep prices stable, the press release said.
The IAPECC has asked for a systematic quota approval for a larger number of importers in order to create a fair market situation.