Nafed Suspends Onion Exports

Sudden spurt in onion prices coupled with reduced arrivals from producing states of Maharastra and Gujarat has forced the National Agricultural Cooperative Marketing Federation of India (Nafed) and other state canalising agencies to suspend exports of the commodity for a fortnight.

Nafed and other agencies have suspended onion export operations from August 8 to August 22, the federation said in a statement.

Exports of the commodity has touched around 2.25 lakh tonne against the sanctioned three lakh tonne this fiscal.

Onion prices have doubled in North India in the wake of delayed rains and reduced supply while the local produce has been mostly sold off affecting the overall volumes traded.

Prices went up up from Rs 4 a kg to Rs 8 a kg as stocks have been depleted and trade has come down in Delhi market to 75 trucks from 125 trucks daily, traders say.

They added that prices of onions have gone up since there was no rain in the May-June period in Pune-Nasik region resulting in late sowing of the new crop, forcing farmers to withhold old stocks in anticipation of better prices later. Prices in the Nasik market are close to Rs 650 per quintal.

Onions had been sold even at a ludicrously low price of Rs 2 per kg in the May-June period when it cost a Maharashtra farmer Rs 3 per kg in freight, packaging, and labour charges to market his produce in North India.

Witholding of stocks due to a lower price is also counter-productive due to the perishable nature of the commodity as it result in 20-50 per cent losses which again has an inflationery impact.

However, Nafed