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This is an archive article published on October 24, 2005

On Ground Zero, Pak move too late

The news of imports from Pakistan is slowly making its way into households here on ground zero8212;the hub of India8217;s onion market15...

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The news of imports from Pakistan is slowly making its way into households here on ground zero8212;the hub of India8217;s onion market8212;but they don8217;t expect any major changes. It8217;s a decision that most in the country8217;s largest onion producing belt believe has come too late.

At Lasalgaon mandi, the wholesale prices ranged from Rs 601 to 1601 per quintal, depending on the grade of onion. The average price was Rs 1450 per quintal at close of business on Friday.

And even before the government decided to step in, exporters were placing orders. 8216;8216;About 44 containers of onions from Pakistan are scheduled to arrive in Mumbai by Monday,8217;8217; says Prakash Daima, trader and director of Lasalgaon8217;s agriculture produce marketing committee APMC. 8216;8216;This should bring down the price in the wholesale market but consumers will still pay a high price.8217;8217;

According to Daima, the present consignment has been imported at Rs 11,125 240-250 dollars per tonne. In addition, there is an import duty of 7.5 per cent. Further, transporting onions within the country at around Rs 1500 per tonne and taking into account the weight loss, consumers will pay at least Rs 25 per kg.

Also, as farmers in Karnataka start harvesting their crop and supply starts trickling in, mandi veterans feel that by the time the Pakistani onion arrives, domestic arrivals would be catching on, further causing a price mismatch.

All the math aside, farmers like Lakhalgaon8217;s Dattu Kandekar are the biggest losers. This season, Kandekar produced two tonnes of onion. On his first trip to the mandi three months back, he sold 1.5 tonnes at Rs 300 per quintal. On his next trip, a week back, his remaining, partially spoilt crop went for Rs 500. 8216;8216;But it still didn8217;t cover my production cost,8217;8217; says the farmer.

 

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