Govt to can onion imports as domestic supply gains ground

With onion prices stabilising, the government has decided to suspend import of the commodity, according to a senior government official.

Wholesale onion prices were down to Rs 10 per kg from Rs 15 per kg a month back,at Delhi's Azadpur mandi . Retail prices are Rs 15-18 per kg from earlier Rs 22-30 per kg. Usually around this time, retail prices are around Rs 14-16 per kg and whole sale price Rs 8 per kg.

"Prices fell as soon as the government announced (last Sunday) imports of onion. Many farmers and stockists who were hoarding the commodity also offloaded huge commodity, thereby pushing prices further," said Dayanand, president of Jaipur-based Potato, Onion and Garlic Association (Poga).

The National Agricultural Cooperative Marketing Federation (Nafed) had earlier finalised imports from China and Pakistan, as sought by the Union government.

"We had finalised 2,000 tonne consignment from China at $240 a tonne CNF (cost and freight) and 650 tonne from Pakistan at $260 a tonne CNF. It,however, turned out that domestic stocks exceeded our demand and prices went down. Thus, we have decided not to import," said Alok Ranjan, Nafed's managing director.

The federation is one of the few canalising agents for onion export-import. As per the government's contingency plan to curb rising prices, Nafed has entered distribution of the commodity.

"Further, the consignment from Pakistan was expensive and was of inferior quality."

Though there has been no shortfall in area coverage and production of onions in the country, the market arrivals have been delayed due to heavy rains in Nashik. Further, he added, the high humidity conditions have led to spoilage in stored onion, thereby affecting the market availability.

India has three crops of onion in a year-early kharif, late kharif and rabi. Total production of onions in 2004-05 is estimated around 59.42 lakh tonne, up from last year's 57 lakh tonne.

The early kharif from Maharashtra will arrive by early October while the late kharif crop of Maharashtra, Rajasthan and Gujarat would hit market from early November. Rabi crop from Maharashtra and Rajasthan are expected to arrive in the beginning of 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.

GRATED FEELING

Wholesale onion prices were down to Rs 10 per kg from Rs 15 per kg a month back,at Delhi's Azadpur mandi

Retail prices are Rs 15-18 per kg from earlier Rs 22-30 per kg. Usually around this time, retail prices are around Rs 14-16 per kg and whole sale price Rs 8 per kg

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