PUNE: Imports of onions from Egypt and Afghanistan have helped to ease a shortage in the domestic market and cool wholesale prices by about 40%. The situation is expected to improve after a bumper crop in Karnataka and the harvest from Maharashtra flood the markets by Diwali.
“India must have imported more than 30,000 tonnes of onions from Egypt and Afghanistan in the last five weeks,” said Danish Shah, partner at Sanghar Exports, which shipped in 2,500 tonnes of onions from Egypt.
Traders pegged imports from Egypt at about 20,000 tonnes, while onions from Afghanistan brought in via Pakistan are likely at about 10,000 tonnes. The figure can even be higher, they said.
On average, about 300 containers of 28 tonnes of onions each were unloaded at Mumbai port every week. An additional 50-60 containers contracted by private parties are expected to reach in the next 15 days, after which imports are ex pected to stop.
The easing of government norms has helped imports. “Relaxation of phytosanitary conditions and quick customs clearance helped ample imports to happen.Last time, when retail prices had touched `. 100 per kg, imported cargo was held up at the ports for up to a month,” said an importer who did not want to be identified.
Onion prices rose this year on account of lower production brought about by adverse weather conditions, including unseasonal rains that affected standing and harvested crops at major producing centres in the country, the government said in August. To check the price rise, the government imposed stock holding limits, ordered onion imports and increased the minimum export prices.
Benchmark wholesale onion prices at Lasalgaon APMC declined to .35kg last week from57kg on August 22, down by .about 39%. Prices may fall further to .`20kg to Rs 30kg in the next fortnight.
