Nafed to suggest waiving import duty and getting onions from China .

PUNE: The National Agricultural Co-operative Marketing Federation of India Ltd (Nafed) on Monday said that if onion prices did not come down by Saturday, it would recommend waiving of import duty on onions and encouraging onion import from China.

Onions have already started coming from Pakistan to the Indian market to tide over the crisis and improve supply.

Speaking to TOI, Bijender Singh, chairman of Nafed said, "Two trucks of onions have already arrived from Pakistan to the Azadpur market of New Delhi and there could be more supply in a couple of days. If the prices do not go down by coming Saturday, this issue will be taken up with the Union commerce ministry with a suggestion to waive import duty and encourage imports from China."

He said, "The average price of the imported onion with seven per cent import duty would be around Rs 37 per kilo in Azadpur market of New Delhi. The average price of the domestic onion in the retail market is more than Rs 60 per kilo. The onion of very high quality is attracting rates of around Rs 80 per kilo, but such stock is very limited." Most of the onions available in the market is of average quality, he maintained.

"If the import duty on onion is waived it will be available at lower price. As onion from China is not as pungent as that grown in India or Pakistan it will have a limited response. But it might help in controlling the prices in the domestic market," Singh said.

According to Nafed officials, India exports around 15 lakh to 18 lakh tonnes of onions every year. As many farmers tend to store onions, it is exported only when there is an assurance of good returns. Close to 10 lakh tonnes onion could have been exported till date during this year.

Maharashtra, Gujarat and Rajasthan are major producers of onion in the country. The country produces around 60 lakh to 70 lakh tonnes of onion every year, of which Maharashtra's share is 50 per cent. Out of the total onion production in Maharashtra, Nashik district alone produces around 40 per cent. The Lasalgaon wholesale market in Nashik is famous for being the biggest onion market in Asia.

A senior official from the state agriculture commissionerate said, "During the post monsoon rains, water entered the onion shoot and it resulted in crops rotting. The onions could not be harvested by ploughing the land as the bulbs are very delicate and get damaged easily. The damage to onions in the farms brought down production in Maharashtra and parts of Gujarat."

Shivlal Bhosale, chairman of the Shri Chhatrapati Shivaji Market Yard Commission Agents Association at Pune said, "There are two types of onions arriving in the market. Onions stored from April this year, which are costlier and are limited in supply. These onions can be transported to distant locations, as only three states produce onions in bulk. The other type is the fresh onion, being harvested by farmers and supplied immediately to markets. These onions do not have longer shelf life, hence such onions have to be sold immediately."

With the ban on export of onion till January 15, onion scheduled for export will be diverted to domestic markets and would help in bringing down the prices, he added.

Source : timesofindia.indiatimes.com