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Centre pushes for more import to bring down onion prices
Vibha Sharma
Tribune News Service

New Delhi, December 22
Intervention at the highest possible level by the government appears to have worked. The Consumer Affairs Department today said the prices of onions will “definitely show a declining trend” in next two-three days while Cabinet Secretary KM Chandrasekhar, who is personally monitoring the situation, asked the Commerce Ministry to “speed up” the import of onions to augment domestic availability.

Among the steps being taken to ease the skyrocketing prices was a decision to import more onions. Consumer Affairs Secretary Rajiv Aggarwal said the Committee of Secretaries will meet tomorrow to decide whether the government would employ the services of its trading companies MMTC, STC and PEC or ask private agencies to import onions. The government has suspended exports till further orders and the Cabinet Secretary will review the situation on Thursday with the secretaries of Agriculture, Consumer Affairs, Commerce and Revenue.

Interestingly, before Prime Minister Manmohan Singh’s directive to Sharad Pawar-led Agriculture and Consumer Affairs ministries to take charge of the situation and bring down the price of the veggie to affordable levels, the Minister had gone on record to say that it would take two to three weeks for the prices of onions to moderate.

Sources said taking a grim view of Pawar’s statement, the Congress asked for a quick intervention to ensure that hoarders do not take advantage of Agriculture Minister’s “bleak prophecy”.

Aggarwal today said average retail price of the vegetable was currently ruling at Rs 49.97 in the country and would “definitely show a declining trend in the next two to three days” to settle between Rs 35 and Rs 40.

“Harvesting of kharif crop has already started in Haryana, Punjab, UP and Bihar. It will begin in Gujarat by December-end and in Maharashtra by January 15,”Aggarwal said.

The government has already banned exports and abolished import duties on onion. As a result, wholesale prices of onions have started declining, though the impact was yet to be seen in retail market.

According to Aggarwal, the most expensive place to buy a kilogram of onion on Wednesday was Tiruchirapalli (Rs 75), followed by Trivandrun (Rs 72.33), Delhi (Rs 64), Chandigarh (Rs 64) and Hisar (Rs 55). The lowest rates were being quoted in Punjab cities like Amritsar and Bathinda where, as per Aggarwal, onion was selling at Rs 30 a kg, possibly due to imports from Pakistan. The government may import 20,000 to 25,000 tonne of onion from Pakistan to ease the situation in other parts of the country as well.

Commerce Secretary Rahul Khullar said MMTC, STC and PEC CMDs had been asked them to look around for import contracts for onion. Instructions have been given to the three state trading firms to look out where onion was available. The government may import either from Pakistan or China. Regarding exports, Khullar said the ban was complete and total.

The Cabinet Secretary has also asked the Railway Board to provide more rakes for expeditious movement of onions from producing regions to different parts of the country. State governments have been asked to take stringent action against hoarders and ensure free movement.

Officials agree that the step to increase the MEP should have been taken immediately after it became clear that rains had spoiled the onion crop. So while Nafed, in its December 1 meeting itself, should have decided to increase MEP of onions, the decision was taken as late as on December 20 when the situation had gone completely out of control.

According to officials, late rains in Maharashtra and Karnataka this year damaged 40 per cent of kharif onion. Even the harvested crop was not of good quality and was either rotten or was of smaller size. 

Buy tyre, get onions free!

Jamshedpur: In a rather unique response to the dramatic increase in prices of the humble onion, a Ranchi trader today offered the bulb free on purchase of tyres. Satnam Singh Gambhir, who runs a tyre shop, is offering 5 kg onions on purchase of a truck tyre and 1 kg on the purchase of a car tyre. — PTI 

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