Import route to bring down onion price hits a wall.

NEW DELHI: Import route may not be able to bring down prices of onion early next month as the government's efforts to get this popular kitchen staple from abroad hit a wall.

Five of the six bids from private traders are found to be invalid while the one importer quoted very high price of Chinese onion, leaving the government with no option but to wait for fresh arrival from domestic producers to manage the crisis.

The government had to encounter the similar situation in August when it floated first tender of this year to import onion from Pakistan, China, Iran and Egypt. Though the cooperative major Nafed had then come out with fresh tender in early September, the consignment from abroad could not be received well in the domestic market due to poor pungency and taste of onion.

The Nafed had floated the third tender to import onion on October 23 when the retail price hit Rs 100 in Delhi and other cities.

Sources said the nafed had received six bids before the deadline expired at 3pm on Tuesday. It was, however, found after scrutiny that only one of them had fulfilled the criteria. Even that was not a viable option. The eligible importer quoted Rs 50 per kg at ex-Delhi price for Chinese onion, making it costlier than the price of domestic wholesale market, they added.

Besides, the government cannot take a decision based on one valid bid as the guidelines of the Central Vigilance Commission ( CVC) prohibit such move unless three valid tenders are received.

Sources in the agriculture ministry said that since fresh arrival of onion from Maharashtra and Karnataka were expected in the next 10 days, it was highly unlikely that the Nafed would go for a fresh tender to import onion like what it did on September 2.

"The issue will, however, be discussed in a secretary-level meeting on Wednesday", said an official. The meeting of secretaries of agriculture, consumer affairs and commerce is scheduled to discuss the price rise of onion.

The government had encountered importers' reluctance in response to its first tender in August when only three private international traders had shown interest till its deadline ended on August 27.

Two of them had wanted to deliver onion at Panvel, Mumbai instead of at the Nafed's warehouse at Lawrence Road in Delhi as specified in the tender, making them ineligible to import from any of the four shortlisted countries.

Source : timesofindia.indiatimes.com