MMTC runs up Rs 8.03 cr loss on onion imports

The loss will be borne out of the price stabilisation fund, said Nirmala Sitharaman

The state-owned MMTC has suffered a loss of Rs 8.03 crore on import of onions, which will be borne out of the price stabilisation fund, Parliament was informed today.

MMTC disposed of onions through local auction as there was no forthcoming demand from states or any local agency for the imported onions despite the fact that it was offered by the government at Rs 50 per kg in state capitals.

"As per provisional assessment of accounts, the loss in transaction in imports of onions has been approximately Rs 8.03 crore, which would be borne out of the price stabilisation fund," Commerce and Industry Minister Nirmala Sitharaman said in a written reply in the Lok Sabha.

MMTC had imported 1,989 tonnes of onions of Chinese and Egyptian origin in two batches on behalf of the Department of Agriculture and Cooperation.

"A quantity of 1,000 tonnes was imported at USD 685 per tonne and the balance 989 tonnes was imported at USD 545 per tonne," Sitharaman said in the reply.

The government said there was no demand for the onions imported by MMTC due to arrival of kharif crop and import of onions by private traders.

"Imports of onion were undertaken as a price stabilisation measure. For perishable commodities like onions which have a short shelf-life, losses could happen in case there is no firm demand from the state governments or central government agencies," she added.