Govt 'sure' onion prices will fall in 10 days

Optimism due to Nafed imports and domestic supply

Food Minister KV Thomas exuded confidence that onion prices, which have become a scoring point between political parties in the election battle to five state assemblies, would stabilise in the next 10 days. 

"Onion prices will come down in next 10 days. Traders should take legitimate margin and not rob consumers. Farmers should get reasonable price and consumers should also get onions at affordable rates.

The state governments have been asked to take strong action against hoarders and few states have already taken action," the minister said here.

The government today said a decision on a tender for onion imports floated by the Nafed would be taken on October 29.

Agriculture minister Sharad Pawar had said yesterday that onion prices would come down in two-three weeks. The timing of cooling down of onion prices, which has shot up to Rs 100 in some parts of the country, is important since elections would be start in Chhattisgarh by that time. Delhi is already witnessing a war of words between the Congress and the BJP over onion prices, an issue that had routed the latter 15 years back.

Stating that there is no need to be "alarmed" about the situation, Thomas said the decision on onion import tender floated by the co-operative Nafed would be taken on October 29 following which shipments would arrive after 3-4 days.

NAFED has floated a tender to import onions from Pakistan, Iran, China and Egypt. "The decision (on the tender) will be taken on October 29. After the decision, onions will arrive in 3-4 days,"Thomas said.

Asserting "We need not be alarmed about the situation," Thomas said he has discussed the supply situation with Maharashtra, Rajasthan and Karnataka governments and the onion arrivals are improving.     

He said onion production is as good and even better than last year but the prices have remained higher.

He stressed on the need to balance the supply situation in the case of onions, potatoes and tomatoes through the help of cold storage facilities.

In vegetable like onion, tomato and potato, there is period of plenty and there is situation of scarcity. "We need to balance with more use of cold storage and warehousing facilities," Thomas said.     

Warehousing Development Regulatory Authority (WDRA) has been asked to explore possibility of storing onion grown in the rabi (winter crop) season to avert any such crisis next year. "Nafed is prepared to procure onions during the plenty and supply to states during lean season. Unfortunately that has not worked. Nafed has very good cold storage facilities," he said.