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Onion crisis to last 2-3 weeks: Pawar -Vishwa Mohan & Dipak Kumar Dash
-The Times of India


NEW DELHI: Even as the Centre on Wednesday stepped in to import onion from China and Pakistan in a bid to cool down prices of the staple, Union agriculture minister Sharad Pawar warned that the crisis may continue for another two to three weeks.

"Next two to three weeks will be tough. Ultimately, we have to find a solution. We have to import as early as possible," Pawar said, putting his faith on the import route to end the crisis.

The central cooperative major Nafed, accordingly, has floated a tender - the third in two months - to import onions from China, Pakistan, Iran and Egypt, and allowed international traders to import the vegetable without prior fumigation so that they can ensure quick supply. Since fumigation at exporters' end takes time, the government decided to fumigate the produce once it reaches India.

Pawar will hold a meeting with food minister K V Thomas and commerce minister Anand Sharma on Thursday to discuss ways of tackling the situation.

Including China in the list of countries from where onion can be imported, however, intrigued many officials in the ministry of consumer affairs as its status report on the price rise warned against buying onions from that country. The report noted that an earlier consignment from China did not find "acceptance amongst consumers because of (the onions') poor pungency and taste".

Even the onion imported by private traders from several countries including China, had not found many takers. The average import price was Rs 49 per kg.

The import, in any case, may not bring early relief to consumers as the consignment from abroad would hit the market only around November 10 in Delhi. It will take another two to three days to reach Rajasthan and other states.

Sensing the crisis, government asked chief ministers of all states to invoke the Essential Commodities Act (ECA) against hoarders as it is suspected that the wholesale traders across the country would take advantage of the situation where supply chain was disrupted due to rains, decline in production and poor storage capacity. Sources said that sensing a fall in produce this year, government should have kept 1-2 million tonnes of buffer stock for use in an emergency.

The ECA allows states to regulate distribution, quality and movement of commodities. It empowers the central government to monitor the action taken by the state to implement the Act.

Asked whether these actions would bring down the price of onion in the next two to three weeks, Pawar said: "No, no. I am not an astrologer."

On sidelines of a function in Bangalore, he said, "Excessive rain has hit supply. We have to import. Fortunately, there is ample onion (stock) available in China, Egypt and other neighbouring countries. The prices in these countries are cheaper compared to India."

The Centre has, meanwhile, called a meeting of agriculture secretaries of five major onion producing states - Maharashtra, Andhra Pradesh, Rajasthan, Gujarat and Karnataka - on October 25 to review the production, distribution and marketing of the crop.

Though Pawar banks on import and fresh supply of onion from southern states to cool down the price, he ruled out banning export of onion. The export has, in fact, dipped substantially after the government had raised the minimum export price twice in passed two months.

On the likelihood of a lower onion harvest this year, consumer affairs secretary Pankaj Agrawal said, "Last year, there was bumper production and farmers had to sell onions at Rs 600 per quintal. This has resulted less sowing this time."

Sources in agriculture ministry said, rather than relying on imports, they were hopeful of driving down prices mainly through improved supply from onion producing states by next month. They pointed out that private traders in the past did not show much enthusiasm about importing onion.

The response of private importers was so lukewarm that the first import tender of Nafed did not get any importer. It had invited the first import tender on August 21, but only three private international traders had later shown interest.

Even two of them had then wanted to deliver onions at Panvel, Mumbai instead of Nafed's warehouse at Lawrence Road in Delhi as specified in the tender, making them ineligible to import from any of the four shortlisted countries.

Since the cooperative major had to select at least three importers who can fulfill the cost as well as delivery criteria, it had to float another tender on September 2.