- Claim for import orders by private traders to increase onion supply

New delhi date. 19 November 2019, Tuesday

Private traders have ordered orders for onion imports to increase the supply of onions and another one ton is expected by the end of the month, a government official said. In many cities of the country, onion prices are rising at Rs 5-8 per kg. It has been decided to import prices as a result of supply pull.

The onion supply will see a fall in prices, the official said. A fortnight ago, onion prices had crossed Rs 5 per kg. But they were generally suppressed when the government intervened.

However, prices in Delhi and other cities of the country are still reported to be around Rs. Traders have told the government that they have placed orders for importing less quantities and were expecting to order another 5 tonnes. Delivery of this onion is expected to come by the end of the current month or early next month.

The official added that since the government has relaxed the quality standards for imported onion by the end of December, its imports would not be particularly constrained.

The government has paved the way for onion import through private and government agencies to bring down the onion supply in the country. The ban on onion exports is expected to extend till February next year. India is a major exporter of onion and due to export restrictions, prices have remained high in Asia, and Nepal, Bangladesh and Sri Lanka have been forced to look to other sources for their onion needs.

Due to floods and heavy rainfall conditions, onion crops have been affected by about 40% in the current kharif season. The government has taken measures like banning onion export, stock limit, to increase domestic supply of onion. This year, monsoon has been affecting the long-running monsoon in the country and in some areas especially in the Nasik district of Maharashtra.