Excess onion exports leading to higher prices

By Staff
|
Google Oneindia News

New Delhi, Feb 7 (UNI) Failure of crop in Pakistan that mounted the pressure on exports from India has led to skyrocketing of onion prices from Rs 25 to Rs 30 per kg today in retail market of Delhi.

Daily arrival of onions in Asia's largest fruits and vegetables market at Azadpur here has come down from an average of 80 truck-loads to 45-50 trucks as exporters are buying the produce directly from farmers at a higher price to take advantage of the neighbouring country's absence in international market, said Mr Rajinder Kumar Sharma, President of wholesale dealers association of potatoes and onions.

Onions are being exported continuously from November last year onwards under the open general licence (OGL). Otherwise India's production is sufficient to meet the domestic demand, Mr Sharma said adding that Pakistan's crop failure led to a surge in Indian exports.

No doubt, the farmers are also cashing in on the prevailing situation and pushing under-riped onions in the domestic market at higher prices fearing the current spurt in prices would crash the moment the supplies from Pakistan resumes.

Now ,the fully-riped premium quality onions are being picked up by exporters, elite class, quality restaurants and star-hotels, he added.

Normally, the prices of onion range between Rs 300-Rs 450 a 40 kg bag which is presently selling at Rs 650-Rs 700 with the high quality even at Rs 750 a bag onwards.

Usually, about 50 truck-loads are sufficient to meet Delhi's requirement and 100 trucks to easily cater to the demand of whole of the national capital region (NCR).

At present, the wholesale rate at Azadpur Mandi is prevailing between Rs 16-17.50 a kg, and street vendors, hawkers and small shopkeepers are selling the crop at Rs 24 and above.

The premium quality onions are being sold at Rs 19 a kg in wholesale, which are being sold to hotels and other elite classes at a price ranging between Rs 25 to Rs 30 a kg.

Onion production in the country is estimated between 50 to 60 lakh tonnes. Maharashtra and Gujarat are the main producers.

Indian onions are being exported mainly to Pakistan, Sri Lanka, Malaysia and other regular importers.

Mr Sharma suggested that either the government should allow only limited export of onions to retain the foreign buyers or make arrangements for imports to meet the demand-supply gap.

UNI

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