Nafed defers onion imports from Pakistan as prices softened

In the wake of softening prices of onion in the country following government measures to increase its availability, Agri cooperative Nafed today said it has deferred onion imports from Pakistan.

"Earlier, we had decided to send our officers to Pakistan for importing 2,200 tonnes of onion. However, as the prices of commodity has started to decline, we have now deferred plan to import," Nafed Chairman Bijender Singh told reporters.

He said Nafed had started the process of importing onion by itself and written to various state government stating the cooperative is ready to provide any amount of onions required by them.

In a bid to provide succour to commonman from heightened onion prices, Nafed has started selling the kitchen staple at Rs 40 per kg through 25 stores in the national capital. 

It is also supplying onions to stock Mother Dairy, DMS, NCCF and Kendriya Bhandar for distribution through their retail outlets.

Nafed officials said since the availability of onion has increased in the domestic market, prices of the vegetable is expected to decline further and it wouldn't be feasible for the cooperative to look for imports now.

In order to rein in the skyrocketing onion prices, the government has suspended exports and abolished import duty on the vegetable. 

It has also more than doubled the minimum export price (MEP) for the crop to $1,200 per tonne from $525 per tonne for the contracts already approved by the regulating agency NAFED.

According to data compiled by National Horticultural Research and Development Foundation (NHRDF), onion prices fell by 37 per cent in Lasalgaon (Maharashtra) to Rs 4,000 per quintal today from Rs 6,299 on December 20.

In Pimpalgaon (in the state), the fall was as steep as 52 per cent to Rs 3,031 per quintal from Rs 6,273 a quintal during the period under review.

In Delhi's Azadpur market, wholesale prices have declined by about 40 per cent in last three days and stood at Rs 35-40 per kg depending on the variety.