Commerce Minister Anand Sharma termed the ban “shocking” and asked Pakistan to let the amount of onions contracted to India be released on land.
“It is shocking and unfortunate that Pakistan has banned onion exports to India via land route. We have urged them that the contracted quantities which were to come via the land route should be released,” he said here.
He said the government is exploring “all opportunities” to persuade the neighbour and revoke the ban.
Reports received from Pakistan say that authorities in that country have stopped 300 truckloads of onions on the Wagah border, insisting that the ban is important to stabilise domestic onion prices.
Shortage of onions following crop failures in key states like Maharashtra prompted the Commerce Ministry to direct state-owned trading bodies to procure it from neighbouring states. The trading bodies - State Trading Corporation (STC) and PEC- contracted onions from Pakistan to bolster domestic supply.
“The matter (export of contracted onion) has been discussed with our High Commissioner in Islamabad. He has already met the concerned officials there,” Sharma said.
He said the decision on banning exports of onions to India through land should have been implemented prospectively and the consignment due for the country shouldn’t have been stopped. Despite the truckloads getting stranded in the land border, officials said a large consignment of onions would reach Mumbai from Pakistan by sea.
While imports by land would expedite the supply and ease the demand in the domestic retail market, consignment by sea would take time to arrive and have to go through lengthy import procedures before being sent to fill the shelves.
Retail prices of onion skyrocketed to Rs 70-80 a few weeks ago as major growers like Maharashtra reported crop failures.The shortfall disrupted supply and increased demand, causing a few anxious days for the Congress-led UPA government at the Centre.
An immediate injection of supply through fast import by land was the best hope for the government to ease onion prices, which was also contributing to food inflation.
Despite easing somewhat, onion prices continue to remain high, a reason for the government to keep feeling anxious over the issue.
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