At the peak of onion crisis, the Centre imported 33,500 tonnes onions at around Rs 50 per kg. Now it has decided to offer to the States the same “tasteless†and “watery†onions at Rs 10-15 per kg.
The Ministry of Consumer Affairs on Tuesday directed National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) to sell these onions in the open market across the country to dispose off huge stock imported from Turkey and Egypt.
Presently, 33,500 tonnes unsold imported onions are lying in containers at Mumbai port as there are no takers due to its size, taste and higher costs. Besides, the Government may lift ban on exports on onions by February-end after softening its prices in the domestic market.
Sources in the Ministry said that the Ministry will provide onions at cheaper rate (between Rs 10 and 15 per kg) to States to ease the supply in the domestic market and sell its huge stock of onion imported from Turkey and Egypt.
“The Ministry has conveyed the State Governments that imported onions will be at cheaper rates, much below the landed cost. These are good quality onions, good in taste and bigger in size,†sources added.
According to sources, the Ministry has urged the BJP-ruled States — Uttar Pradesh, Haryana, and Karnataka — to buy onions at lower prices as soon as possible as the imported onions are susceptible to moisture if kept outside a controlled environment.
According to sources, 250 refrigerated containers with about 7,000 tonnes of imported onions rotting and lying idle for about a month now at Mumbai port and importers are in no hurry to clear their consignments as the landed cost of onions is way above the local market costs.
The Government’s original plan was to sell imported onions at an average of Rs 49-55 per kg on a no-profit-no-loss basis. But there are virtually no takers for the imported onions as they are larger in size, nearly four times the size of onions from Nashik, but significantly less pungent and taste are different. As per the Department of Consumer Affairs data, Maharashtra, Assam, Haryana, Karnataka and Odisha have withdrawn their demand of 10,000 metric tonnes (MT), 3,000 MT, 3,480 MT, 250 MT and 100 MT of imported onion, respectively.
“The Modi Government has also approached Maldives, Bangladesh, Nepal and Sri Lanka to sell these onions at “no profit no loss†basis but they have shown no interest,†said officials of Ministry of Food and Consumer Affairs.
The bulb now sells for Rs 23-30 /kg in the wholesale market while it is around Rs 50-60 per kg depending upon quality and locality from the peak of Rs 160 per kg last month. Fresh onion is available from January to May. The arrival of onions has improved in the past one week and shortfall has reduced from 26 per cent to 20 per cent in the mandis.
Retail onion prices had skyrocketed across the country due to supply disruption from flood-affected growing States like Maharashtra, Karnataka and Madhya Pradesh.
In September 2019, the Government banned the export of onions to increase availability of the commodity in the domestic market and contain rising prices. The Government had also imposed stock limits on traders.
Onion production is estimated to have declined by around 25 per cent in the Kharif and late Kharif seasons of 2019-20 crop year compared to the previous year due to late monsoon and then excess rains in the major producing States.
