PUNE: With prices touching the half-century mark in wholesale markets on Monday, traders are busy signing contracts to import onions from Pakistan and Egypt, which have been coming to Delhi for the past eight days. With no effective government action and deficient rains in Maharashtra and Karnataka, onion prices increased about 20% in the Lasalgaon market on Monday, as it opened after a three-day holiday.
"With prices touching Rs 50/kg in wholesale markets, a good number of import deals are likely to be signed in the next two days," said Ajit Shah, president, Onion Exporters Association of India.
The average wholesale onion prices at Lasalgaon APMC rose to Rs 43/kg on Monday from Rs 36/ kg on Thursday. Monday's average price is thrice than what it was during the same period last year at the same market. The maximum price for the best quality onion was Rs 46/kg at Lasalgaon. However, it was above Rs 50/kg at markets such as Hyderabad, Chennai, Belgaum, Kolhapur and Solapur.
"Afghanistan onion is already coming from Pakistan to Delhi for the past eight days," said Surinder Buddhiraja, onion trader from Azadpur APMC.
About 10 to 15 trucks, each carrying about 15 tonnes of onions, have been reaching the Delhi market every day.
Though prices have been rising continuously, traders have been cautious about importing due to last year's experience — the imported cargo was not cleared for 10 to 15 days at the ports, resulting in traders claiming that they had to bear the losses.
About 22 containers of onions — about 800 tonnes — are expected to come to Mumbai in the next 10 days. After the jump in prices, many traders are expected to bring onions from Pakistan in the next few days.
"There will be good margin on the imported onions at this moment," said a trader from Delhi, requesting anonymity.
Though onion prices have been rising every day, traders said that government efforts are not enough to control the situation. There has been hardly any response to the tenders floated by Nafed (National Agricultural Co-operative Marketing Federation).
"Unless the government imports at least 50,000 tonnes of onions, prices will keep rising as there is a shortage of good quality onions and rains have been scant in Maharashtra and Karnataka," said a leading onion exporter from Maharashtra. [/'QUOTE]
Traders look to import onions from Pakistan as prices skyrocket - The Economic Times