Pak onions to India's rescue

2005-10-23 From AMRITSAR/NEW DELHI

Onion traders in Punjab have started to buy onions in bulk from neighbouring Pakistan in the wake of the continuing shortage of the crop in the markets. They have placed orders for more than 700 tons from Baluchistan and the imports are likely to bring down prices.
The price of onions ranged bewteen Rs 17 and Rs 25 per kg across the country in the wake of the burgeoning demand, complemented by the late arrival of the commodity due to rains and depletion of stocks.
Amidst complaints of retailers creating artificial scarcity and depleting stocks, onion prices continued to rule high in all parts of the country, including the main onion producer state of Maharashtra, even as some states opened special outlets to sell onions at cheaper rates. The rising trend, market sources said, is likely to run through the festive season.
In Madhya Pradesh, while wholesale prices of good quality onions ranged from Rs 11.25 to Rs 12.5 per kg, retailers were selling it for anything between Rs 18 and 25 per kg.
Shortage created in the markets led to around 20 per cent hike in prices since last month, but wholesale dealers are reportedly holding plenty of stocks due to a good harvest in Malwa region, a report from Bhopal added. The retail price climbed to Rs 25 per kg in many markets of Chhattisgarh, an increase of Re one from yesterday. However, in the wholesale market, onions were sold at Rs 18.
The Gujarat government has asked district collectors and civil supply officers to see that traders do not indulge in hoarding and black marketing. Prices galloped from Rs 10 per kg to Rs 25-30 per kg in the retail market in Gujarat in the past one week. The civil supplies department in-charge, Mr SK Nanda, said it was being ensured that onions are available at less than Rs 18-20 per kg. He said the crop is rotting across the country and the state due to excessive rainfall resulting in drastic fall in stocks.