Onion prices rise as India bars export

Onion prices rise as India bars export
eKantipur.com, 11-Oct-07

A restriction on the export of onions by India has led to a dramatic rise in the price of the vegetable, even as prices of most other vegetables are a]lready high because of continuing shortages in the Kathmandu valley.
The price of onions touched Rs 50 per kg on Thursday at the Kalimati wholesale market. They were selling for about Rs 35 per kg two weeks ago when the supply situation was relatively better. "Onions are in such short supply in India that the Indian government has slapped restrictions on their export to prevent a crisis in the market," Bharat Upreti, a wholesaler and importer of onions at the Kalimati vegetable market, told the Post.

Citing a paucity of onions in India, major suppliers have stopped shipping the popular vegetable to Nepal.

Following the ban, the supply of onions from India has come almost to a halt. "Whatever that is coming is coming unofficially and through clandestine routes taking advantage of the porous border," said Upreti.

According to traders, the volume of onion supplies from India at the Kalimati vegetable market has dwindled to a meager six tons daily from over 60 tons previously. Nepal imports most of its onions from Nashik in the Indian state of Maharashtra.

Responding to the short supply and rising price of onions, imports from China are finding their way into the Nepali market.

Although the quantities coming in are small, Chinese onions have helped check the price rise. "If it had not been for Chinese onions, the price would have crossed over Rs 80 per kg," said Binaya Shrestha, planning officer of the Kalimati Fruits and Vegetables Market Development Board (KFVMDB). Shrestha expects onion prices to remain on the higher side until the next harvest season in November.

Likewise, the price of potatoes has inched upwards marginally over the past two weeks. The prices of red and white potatoes were about Rs 25 and Rs 22 per kg respectively on Thursday. However, to the relief of consumers, tomato prices tumbled over the past two weeks.

According to the KFVMDB, the going rates for big and small tomatoes were Rs 23 and Rs 19 per kg respectively on Thursday, a steep drop from Rs 35 and Rs 39 two weeks ago.