Govt asks MMTC to import 10000 tonnes onion

Onions are including to the misery of consumers, which on the retail degree Monday shot as much as Rs eighty per kg in the national capital because of tight provide regardless of the federal government’s steps to maintain a lid on prices. These include shortage in supply, high wholesale prices, hoarding at different levels and nearly all states not imposing the “stock limit” on onions.

While the Narendra Modi government at the Centre has directed MMTC to import onions to rein in prices, the Aam Admi Party’s Delhi government has decided to subsidise the staple to reduce the hardship of the poor.

According to officials, the wholesale price of onion at Azadpur Mandi was today recorded in the range of Rs 40-53.

“Going ahead, onion prices are anticipated to rise additional resulting from delay in arrival of the brand new crop”. However, retail prices in many areas across the city varied between Rs 70-80.

Concerned over rising prices, the government has chose to import 10,000 tonnes of onion by floating a global tender through state-owned MMTC.

For instance, the wholesale price of onion at Lasalgaon in Maharashtra – the Asia’s biggest market for onions – rose to Rs 43 per kg, the highest so far this year, due to sluggish supply of the crop.

At present, the demand in the domestic market has been met through increased supply from the National Agricultural Cooperative Marketing Federation of India (NAFED), Small Farmers Agribusiness Consortium (SFAC) and other agencies. Officials said there are number of reasons behind the sharp rise in onion prices.

Onion prices are hardening due to the fall in production and sluggish supply of stored onions, which are meant for meeting demand during the lean July-September.

Total onion production is estimated to be lower at 189 lakh tonne in 2014-15 crop year (July-June), slightly lower than 194 lakh tonne a year ago.

Maharashtra, Karnataka and Madhya Pradesh are the top three onion producing states.