Nafed floats import tender as onion prices jump to Rs80 per kg

National Agricultural Marketing Federation (Nafed) today floated a global tender for import of onion after prices in the retail market climbed to levels around Rs70-80 boost domestic supply and curb prices which have again risen to Rs 70-80 per kg in most retail markets of the country.

''Nafed is interested to import onions from Pakistan, Iran, China and Egypt. Interested parties having experience in importing onions may specify the quantity that can be offered and rates on cost and freight per tonne along with final rate per tonne in INR for delivery,'' Nafed said.

The last date for submission of offer is 27 August. Nafed did not state the quantity or time of import and market expects onion prices to hold on to current levels till October when the new crop is expected to arrive.

Nafed has sought fresh onions grown in 2013 and global traders will have to import them on behalf of Nafed and ship them to Delhi in a week's time after confirmation of orders, it said.

The onions so imported should be of good quality and completely free from fungus infestation and attack by insects and moulds.

Nafed has also sought phytosanitary and fumigation certificates issued by a competent authority of the exporting country certifying onions are fumigated with methyl bromide are free from smut, dry rot and maggot.

In the national capital onion prices in the retail markets have bounced back to 70-80 levels from levels around Rs60 per kg after wholesale rates rose to Rs4,500-5,500 per quintal.

In the key market of Lasalgoan in Maharashtra - Asia's largest onion market - wholesale price today rose slightly to Rs4,125 per quintal.

While the government has so far not banned export of the commodity, it had imposed a minimum export price (MEP) of $650 per tonne.

Onion prices in retail markets across the country have been staying firm from early this month, mainly due to a spurt in wholesale prices in Lasalgoan in Maharashtra, the largest growing state.

Also, supplies from other growing states like Rajasthan, Madhya Pradesh, Andhra Pradesh and Tamil Nadu have not been steady because of rains and transportation problems.