Pakistan's onions to the rescue as India prices skyrocket

Amritsar: Some relief in the sky-high prices of onions in India is expected with truckloads of the commodity arriving from neighbouring Pakistan through the Attari-Wagah land border check-post, traders said on Tuesday.

The 'unprecedented' move comes amid a warning from the Indian agricultural ministry that the current situation could last for two to three weeks.

Now, Amritsar-based importers are placing orders for nearly 1,000 tonnes of onions from vegetable markets in Pakistan. The produce is likely to arrive through the land border in the next one week, a leading importer said here.

At least 30 truckloads of onions arrived through the Attari-Wagah border on Tuesday.

"I have placed an order for over 500 tonnes of onions from Pakistan. The stock will reach India in the next three days. I received six trucks today (Tuesday)," importer Rajdeep Uppal of Narain Exports and Imports told IANS here.

"It is the first time that we are importing vegetables from Pakistan through the land border route. So far, we had only been exporting onions, tomatoes and other things to Pakistan. In March-April this year, we had exported huge quantities of onions and tomatoes to Pakistan after that country was lashed by floods," Uppal said.

Importers in India are apprehensive that the sudden demand for onions, which India in recent years was exporting to Pakistan, could push up the prices of the commodity in the neighbouring country as well since traders there try to make a fast buck, despite the Pakistani onion being inferior in quality, when compared to the India one.

"The onions in Pakistan cost around Rs.20 per kg, inclusive of all duties. But the rates could go up higher as more quantity is sought," one importer here said.

Meanwhile, India's agriculture Minister Sharad Pawar has said the situation may continue for the next two to three weeks while Finance Minister Pranab Mukherjee termed it as 'unfortunate', blaming a demand-supply gap.

"Because of heavy rains, crops have been destroyed. In such a situation, it may take two to three weeks for the situation to get normal," Pawar told reporters here.

"The ban on export may make the situation better in some days," he said.

The export of onions has been banned till Jan 15. The National Agriculture Cooperative Marketing Federation (NAFED) announced that it is taking sufficient steps to control the situation.

"The prices are already coming down. It seems like it was some freak phenomena," NAFED Managing Director Sanjeev Chopra said.

"We have suspended exports till January 15. If the situation becomes better we may revise it. The NOC (no objection certificate) for the exports already approved has been raised to $1,200," Chopra said.

"The NAFED will sell onions at stalls across Delhi," Chopra added.

Finance Minister Mukherjee blamed the supply-demand gap for the situation.

"It is very unfortunate that onion prices have risen very high... Now there is a mismatch between supply from mandi to the consumer point. Those bottlenecks have to be removed and I will talk to concerned ministries," Mukherjee told reporters.

"I hope appropriate steps will be taken. Exports have already been banned," he said.

Commerce Minister Anand Sharma had on Monday said that hoarding was responsible for the price rise.

"The price rise is because of hoarding, there is enough stock in the country," Sharma had said.

Commenting on hoarding, Pawar said that state governments have been asked to act on it.

The issue has been taken up by the opposition, which blames the government's faulty economic policies for the situation.

"It is because of the wrong economic policies and bad governance of the UPA (United Progressive Alliance)," BJP president Nitin Gadkari told television channels.

Communist Party of India's (CPI) D. Raja said here the government was helpless against market forces.

"Government pleads helplessness against market forces. One minister is saying it is bad weather, other says it is hoarding. If it is hoarding, they must act against it and tell the nation," Raja said.

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