New Delhi: Cheap Chinese lights and toys may have inundated Indian markets ahead of New Year, but this time consumers will also get to savour onions from China.
To rein in soaring prices of the humble onion, hovering between Rs 80 and Rs 100 per kg in the domestic market, the central government has decided to import this most common kitchen staple from China.
Documents accessed by ThePrint has revealed that public trading agency Metals and Minerals Trading Corporation (MMTC) has issued a global tender to import 11,000 metric tonnes (MT) of onion last week, out of which 4,000 MT was awarded to China and 7,000 MT to Turkey.
A senior official in the consumer affairs ministry said the onions are scheduled to arrive in India by 31 January 2020. The official also said that the price of the onions are likely to be between Rs 70 and Rs 80 per kg in India.
The government had also placed orders to import the vegetable from the Netherlands, Egypt, Iran, Turkey and Russia. In November, MMTC, which primarily deals in the import and export of metals and minerals, was asked to procure onions after prices soared beyond Rs 120 per kg following a dip in production.
Officials in the consumer affairs ministry blamed excess rains in the two key onion growing states of Maharashtra and Gujarat for its low supply.
Also read: This is how India can make sure onions are available throughout the year and at good price
India second largest producer of onions
On 1 December, Global Times, a newspaper published by the ruling Chinese Communist Party’s mouthpiece, People’s Daily, said the country was willing to export onions to ease India’s crisis.
According to the Agricultural & Processed Food Products Export Development Authority of India, China is the largest producer of onions in the world. It produces 20,507 thousand tonnes each year, closely followed by India with an annual production of 15,118 thousand tonnes.
China has also been supplying onions to Nepal after India enforced a ban on the export of onions in September. Sources in the consumer affairs ministry said it only resulted in an increase in the price of Chinese onions.
In Nepal, the cost of Chinese onions was around Rs 100 per kg in mid November. It has increased to Rs 160 per kg now.
Govt decided to import 1.2 lakh MT onion
In November, the government had decided to import 1.2 lakh MT of onions from various parts of the world to tide over the crisis. But the MMTC has managed to float tenders to procure approximately 40,000 MT (including the 11,000 MT ordered last week) so far.
Of this, only 290 MT of onions have arrived at Indian ports.
A second official of the consumer affairs ministry said, earlier, tenders were floated to import onions at a cost of $600 per tonnes. However, onions from China is scheduled to arrive at a much higher rate of $714 per tonnes.
The official also said not many countries have come forward to bid because of “stringent import norms” by the central government. It has also resulted in poor response from bidders and delay in closing of tenders.
“We have now relaxed some of the norms such as reducing the bulb size from 50-70 mm to 40-80 mm. However, heavy financial guarantee and many such clauses still exist which has to lead to sluggish competition in tenders for onion imports,” the official added.
Also read: Prices of potato, tomatoes, other vegetables also soar as winter rains damage crops