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LATEST NEWS UPDATES | Decision to import onions reflects the government's anti-producer bias -Kabir Agarwal

Decision to import onions reflects the government's anti-producer bias -Kabir Agarwal

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published Published on Sep 22, 2019   modified Modified on Sep 22, 2019
-TheWire.in

The move itself reveals a deep-seated pro-consumer and anti-producer bias that has been, in large part, the reason for the agriculture economy being in doldrums.

New Delhi:
The government has decided to import onions from ‘Pakistan, Egypt, China, Afghanistan or any other origin’, according to a Metals and Minerals Trading Corporation Limited notifications. Some concerns were raised about importing from Pakistan.

“And why import from Pakistan? Is the Indian farmer a bigger enemy?” farmer leader Raju Shetty was quoted as saying by the Indian Express.

But those concerns might be overstated as India-Pakistan trade remains suspended. In August, Pakistan suspended all trade with India. Earlier, in February India had hiked customs duty on all goods imported from Pakistan to 200%.

So, for onions to be imported from Pakistan it would require the government of India to do two things:

1. Ease the import duty

2. Request the government of Pakistan to allow export of onions.

Both seem unlikely and would probably be unpopular with voters. India can still import onions from other countries as the tender has kept that option open.

But the move itself reveals a deep-seated pro-consumer and anti-producer bias that has been, in large part, the reason for the agriculture economy being in doldrums. While the quantity to be imported – 2,000 metric tonnes – is only a few days’ worth of arrivals in the mandis of Maharashtra, the urgency with which the government, faced by a price rise, has acted is striking.

In Maharashtra, for instance, which produces about 30% of India’s onions, the wholesale price of the bulb has been on the rise. The average price rose 50% between July and August to Rs 1,802 per quintal. The upward trend has continued into September with the average price for the first 12 days of the month settling at Rs 2,267 per quintal.

Please click here to read more.

TheWire.in, 13 September, 2019, https://thewire.in/agriculture/decision-to-import-onions-government-anti-producer-bias


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