Govt floated import tender, allowed import without fumigation.
The government has withdrawn the 'export licence' restriction for overseas sale of onion, as the prices of commodity have started to soften in domestic market. The Director General of Foreign Trade has notified that the export of onions could be undertaken after getting the no-objection certificate from NAFED and 12 other state trading agencies.
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Chief Minister Sheila Dikshit recently met Union Agriculture Minister Sharad Pawar urging him to ban onion export from Maharashtra and re-direct the vegetable to New Delhi to keep the prices steady.
Wholesale price-based inflation rose to an eight-month high of 0.26 per cent in November, driven by a sharp jump in food prices, especially onion and vegetables. The WPI inflation was in the negative or deflationary zone for the past seven months since April and was at (-)0.52 per cent in October. The last positive WPI inflation was recorded in March at 1.41 per cent.
In the retail markets, rates have fallen to Rs 30-35 a kg from Rs 100-level.
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Congress leaders claim the rising price of onions is due to hoarding by pro-BJP traders. Renu Mittal reports
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Onion prices had peaked to Rs 57 per kg on August 22.
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The Centre recently released the first advance estimates of kharif crops that, barring tur dal, showed a dip in production due to uneven monsoon and other natural calamities including pest attacks in cotton. The first Advance Estimates, released a few weeks back, are usually initial projections on the crop size and, more often than not, are revised as more inputs come from the fields. But, the findings have rung alarm bells in several quarters. The Centre, along with many others, is confident that as more details come, the estimates will be revised upwards.
From the Sensex basket, Tata Motors, State Bank of India, Tata Steel, Power Grid, NTPC, Bajaj Finserv, Bajaj Finance and Asian Paints were the major laggards.
India on Tuesday set a minimum export price for onions of $300 per tonne to discourage overseas shipments amid an inflation scare that threatens to stoke public anger over rising prices at local food markets.
Onion production in the country is likely to be around 10.5 million tonnes in 2010-11, down from 12 million tones last year.
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Retail prices across the country continued to be at Rs 80 a kg.
Onion supply to the city, which comes from Maharashtra, Rajasthan and Madhya Pradesh, is normal at 12,000 quintals in Azadpur, Asia's largest wholesale market, it added.
"After weeks I ate onions today with bhindi," Chief Minister Sheila Dikshit said on Saturday, admitting that the skyrocketing price of the vegetable had affected her kitchen too.
Onion prices have been ruling at Rs 70-90 per kg in most parts of the country and even touched Rs 100 per kg in some cities like Patna and Jammu.
Retail price of onion is expected to ease across the country in the second week of November as dealers foresee plenty of fresh stocks to flood the markets.
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Onion is selling for Rs 30 a kg in some parts of the country, as supply of the edible kitchen bulb has been choked by hoarders betting on further price rise due to floods in the main producing states of Karnataka and Maharashtra, government officials said.
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The most plausible suspect for the price surge, therefore, is the inability of the market to channel onions from growers to consumers without too many intermediaries adding to costs.
Because of late monsoon, arrival of kharif (summer) onion crops would be delayed by a month in key growing areas of Maharashtra, Rajasthan and Madhya Pradesh, threatening to push up prices in the late September and October.
Prices of the key vegetable have also gone up in various cities.
Onion prices both in wholesale and retail markets in most parts of the country have seen a sharp increase since July.
Build up inflation rate in the financial year so far was 2 per cent compared to a build up rate of 4.56 per cent in the corresponding period of the previous year. Inflation in food articles as a group rose to 11.08 per cent during the month as against 9.80 per cent in the previous month, mainly driven by exorbitantly high onion prices, the rates of which spiked by over 172 per cent from a year-ago. The annual rate of inflation, based on monthly wholesale price index was at 0.16 per cent in October.
Binu Alex, co-founder and editorial director of www.commodityonline.com, in an interview to Syed Firdaus Ashraf/Rediff.com, says demand-supply imbalance arising out of the government's inability to preserve the crop for non-harvesting season is the root cause behind the price rise.
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Onion output dropped to 189.2 lakh tonnes in 2014-15 crop year due to poor rains
High prices are making people shed tears for onions before they are even chopped, but now a website is offering the bulbs at prices as low as Rs 9 per kilogram.
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Durham pacer Graham Onions will replace injured seamer Chris Woakes in the England squad for the last two ODIs and the one-off Twenty20 against India, the England and Wales Cricket Board (ECB) has stated.
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