Nafed to import onions to check price hike

The National Agricultural Cooperative Marketing Federation of India (Nafed) has finalised import of onions from China and Pakistan in wake of skyrocketing prices in the domestic market.

"The federation has to import onions, as sought by the Union government. Today, we 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," said Alok Ranjan, managing director. The federation is one of the few canalising agents for onion export-import.

"While the Chinese produce will take two weeks to touch Mumbai, the Pakistani consignment will arrive in a week." Onions from China will cost about Rs 15 a kilogram and that from Pakistan will be slightly dearer at Rs 16.5 a kg.

As per the government's contingency plan to curb rising prices, Nafed has entered distribution of the commodity.

"We will be daily bringing in 100 tonne of onion from Rajasthan to Delhi and its neighbouring areas, which will be sold via outlets of the federation, Kendriya Bhandar and even Mother Dairy if desired," Ranjan added.

Further, as the new crop from Rajasthan is good, arrivals to market like Delhi in on a rise. Today's arrivals at Delhi's Azadpur mandi is about 8,800 quintals following which prices fell from yesterday's Rs 13-15 a kg to Rs 11.85 a kg.

Retail prices had earlier touched a high of Rs 22-30 a kg in some cities as the wholesale prices touched Rs 15 a kg. Usually this time around, retail prices are about Rs 14-16 a kg and wholesale price at Rs 8 a kg.

Traders feel that with arrivals likely to rise day-on-day, wholesale and retail prices, will within 2-3 days come back to usual levels.

Though there has been no shortfall in area coverage and production of onions in the country, market arrivals have been delayed owing to heavy rains in Nashik.

Further, he added, the high humidity conditions have spoiled stored onions, thereby impacting supply.

India has three crops of onion in a year""early kharif, late kharif and rabi. Total production of onions in 2004-05 was 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 woud hit market from early November. Rabi crop from Maharashtra and Rajasthan are 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.