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NEW DELHI: Amid rising tensions along the Line of Control, the government has shortlisted Pakistan among the countries from where it plans to import onions in order to tide over the shortage of the staple.
The Centre on Wednesday settled on the import option, identifying, besides Pakistan, China, Iran and Egypt to source onions and help ease the domestic supply shortage.
Announcing a clutch of measures amid concerns about the political repercussions of spiraling onion prices, the government has set the minimum export price (MEP) of onion at $650 per tonne to discourage exports.
The public-sector agriculture marketing company NAFED - National Agriculture Cooperative Marketing Federation of India -- will import onion "at best rates and offer the same for domestic consumption in the country".
At present, onion price is the cheapest in Iran followed by China, Egypt and Pakistan, a government source said. The decision was taken at an inter-ministerial meeting on Wednesday.
Sources said imposition of MEP was the first option for the government to check onion exports and importing the commodity would be the second option. The MEP was scrapped in May last year, and its re-introduction is aimed to render exports non-profitable, the assumption being that traders would prefer to sell their products domestically to make more profit.
Sources said commerce and industry minister Anand Sharma had floated the idea of imposing the MEP when onion prices touched Rs 35 per kg but the idea was shelved due to opposition from political parties.
Officials said strict quarantine rules, which acted as an obstacle to onion imports from China and other countries, would be eased to enable the entry of the staple.
It was also decided that NAFED will procure onion at the best prevailing rates from Lasalgaon/Pimpalgaon in Maharashtra and that would be offered to all state marketing and supply federations at a nominal service charge of 2%.
On Wednesday, onion prices in select cities including Delhi, Kolkata, Chandigarh and Patna were hovering around Rs 70-Rs 80. In Mumbai and Chennai, it was marginally less at between Rs 60 and Rs 70.
Earlier in the day, the committee of secretaries headed by the cabinet secretary decided that the Centre should write to state governments to impose stock holding limits and intensify drive against hoarders.
Since two states - Maharashtra and Karnataka - produce 40% of the onion in the country, the recent jump in the price of the bulb was attributed to disruption of supply line due to many reasons, including holidays around Eid festival. It also triggered hoarding by local suppliers in different parts of the country.
Amid LoC firing, India plans to buy onions from Pakistan - Times Of India
The Centre on Wednesday settled on the import option, identifying, besides Pakistan, China, Iran and Egypt to source onions and help ease the domestic supply shortage.
Announcing a clutch of measures amid concerns about the political repercussions of spiraling onion prices, the government has set the minimum export price (MEP) of onion at $650 per tonne to discourage exports.
The public-sector agriculture marketing company NAFED - National Agriculture Cooperative Marketing Federation of India -- will import onion "at best rates and offer the same for domestic consumption in the country".
At present, onion price is the cheapest in Iran followed by China, Egypt and Pakistan, a government source said. The decision was taken at an inter-ministerial meeting on Wednesday.
Sources said imposition of MEP was the first option for the government to check onion exports and importing the commodity would be the second option. The MEP was scrapped in May last year, and its re-introduction is aimed to render exports non-profitable, the assumption being that traders would prefer to sell their products domestically to make more profit.
Sources said commerce and industry minister Anand Sharma had floated the idea of imposing the MEP when onion prices touched Rs 35 per kg but the idea was shelved due to opposition from political parties.
Officials said strict quarantine rules, which acted as an obstacle to onion imports from China and other countries, would be eased to enable the entry of the staple.
It was also decided that NAFED will procure onion at the best prevailing rates from Lasalgaon/Pimpalgaon in Maharashtra and that would be offered to all state marketing and supply federations at a nominal service charge of 2%.
On Wednesday, onion prices in select cities including Delhi, Kolkata, Chandigarh and Patna were hovering around Rs 70-Rs 80. In Mumbai and Chennai, it was marginally less at between Rs 60 and Rs 70.
Earlier in the day, the committee of secretaries headed by the cabinet secretary decided that the Centre should write to state governments to impose stock holding limits and intensify drive against hoarders.
Since two states - Maharashtra and Karnataka - produce 40% of the onion in the country, the recent jump in the price of the bulb was attributed to disruption of supply line due to many reasons, including holidays around Eid festival. It also triggered hoarding by local suppliers in different parts of the country.
Amid LoC firing, India plans to buy onions from Pakistan - Times Of India
