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Karnataka wary of onion, dal imports due to excess supply in the market.


Date: 07-09-2015
Subject: Karnataka wary of onion, dal imports due to excess supply in the market
BENGALURU: Karnataka is watching the import of tur dal and onion by the Centre as the farmers in the state might be impacted due to the excess supply of these products in the market.

The Centre, through the Metals and Minerals Trading Corporation (MMTC), has imported 10,000 tonnes of tur dal in an effort to control the spiralling prices of the red gram in the domestic market. Karnataka is the largest producer of tur dal in the country, with the district of Kalaburgi - represented by Congress floor leader in the Lok Sabha Mallikarjun M Kharge - known as the `tur bowl of India'.

"The unnaturally high tur dal prices in the market seem to be in anticipation of a poor harvest in December this year due to the drought in the region," Karnataka Agriculture Minister Krishna Byre Gowda told ET.

He contended that last December's harvest was a normal one for the state and could not account for the current spurt in the price of tur dal, which is being retailed at about `. 150 a kg. "The farmers got over . 5,500 per quintal last year. The marketing ` people have to explain why the rates have gone so high now. It may be due to hoarding," he said.

The Minister admitted that given the situation, some amount of import was necessary to ensure that the prices don't go through the roof. "But the Centre should make sure that the imports do not depress the markets so much that our farmers will get low prices for this December's harvest," he said.

Karnataka, which has seen about 400 suicides by farmers since January this year, is reeling under the most severe drought in 44 years, with 135 of the state's 176 taluks being declared drought-hit. However, rains have picked up to a little extent in the last couple of weeks and there is some hope that the returning northeast monsoon will save some of the tur crop.

On the onion situation - Karnataka is the second-largest producer in the country after Maharashtra - Gowda said crop in Chitradurga district was normal, but in Gadag, close to the Maharashtra border, the production situation was not very good.The National Agricultural Cooperative Marketing Federation of India (NAFED) has sent a letter asking whether the state wanted any import of onion to cater to the domestic market.

"We have asked for some data on the production estimates and the market requirements in the state. Again, we want to be sure that the imports do not affect the prices that our farmers get in the market and ensure their financial well-being," Gowda added.

Source : economictimes.indiatimes.com

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