Home Tags Onions
Excess monsoon destroyed the kharif onion crop, but there was much administrative failure that led to the prices crossing Rs 150 per kg.
Govt spent Rs 226 crore to import the onions, but has only sold worth Rs 17-19 crore to the states.
Until last week, 18,000 MT of imported onion had arrived but states have only bought 3,000 MT. Modi govt is offering Bangladesh a lower price to buy stock.
Delay in the arrival of imported onions and availability of cheaper local varieties has led to states not picking up almost 6,000 MT of the kitchen staple.
A glut of onions is expected in the coming weeks as the market is going to be flooded with imports and produce from rabi and kharif seasons.
Metals and Minerals Trading Corporation has issued a tender to import 11,000 metric tonnes of onion, of which 4,000 MT was awarded to China.
Onion prices have soared to Rs 100/kg, forcing govt to import stocks from Egypt & Turkey. But how will these onions be different from India’s 30-odd varieties?
Onion is a seasonal crop, and offseason shortages result in sky-high prices in September-November each year. But politicians’ response creates more distortions.
NAFED stored its buffer stock of 57,372 MT onions using traditional methods as opposed to cold storage. Over half of it got destroyed due to moisture & rain.
Modi govt is importing more onions under relaxed rules to deal with supply & price issues. But experts fear for India’s agricultural biodiversity.
12Page 1 of 2