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20 Dec, 2023 News Image Stabilizing Agricultural output.
The Department of Agriculture & Farmers Welfare (DA&FW) is implementing various schemes namely National Food Security Mission (NFSM), Mission for Integrated Development of  Horticulture  (MIDH),  Rashtriya  Krishi  Vikas Yojana (RKVY), National Mission for Sustainable Agriculture (NMSA) etc. for increasing Production, Productivity and minimizing risks associated with climatic variability ensuring sustainable agricultural production. Concerted efforts by Central Government and states has resulted in record foodgrains production of 329.69 million tonnes during 2022-23 (Final Estimates of DES). The scheme Pradhan Mantri Fasal Bima Yojana (PMFBY) also ensure providing financial protection to the farmers against crop loss due to natural disasters, encouraging them to adopt and implement modern agricultural practices. Farmers with crop loss of 33% and above due to natural calamities also avail input subsidy as per NDRF/SDRF norms.
 
Indian Council of Agricultural Research (ICAR), launched a flagship network project ‘National Innovations in Climate Resilient Agriculture’ (NICRA) in 2011 to enhance the resilience of agriculture sector against climate change. The project aims to develop and promote climate resilient agriculture to address vulnerable areas of the country and help the districts and regions to cope up with extreme weather conditions like droughts, floods, frost, heat waves etc. Further to enhance the resilience of agricultural sector against the increasing unpredictability of monsoon pattern, ICAR has released 2380 high yielding varieties/ hybrids of field crops for different agro-climatic conditions during 2014 to 2023 including 240 less water requiring/drought/moisture stress/water stress tolerant comprising 128 of cereals, 22 of oilseeds, 34 of pulses, 9 of fibre crops and 29 of sugar crops. Besides, a total of 72 flood/submergence/water logging tolerant field crop varieties including 46 of rice, 2 of maize, 1 of sorghum, 5 of Jute, 1 of rice bean and 17 of sugarcane have been developed. In addition to above, 42 heat stress/high temp tolerant, 17 of cold/frost/winter chilling/low temp tolerant varieties of different field crops have also been developed. The above specific crop varieties are being promoted for cultivation in the country under different agro-climatic conditions.
 
Indian Council for Agricultural Research Institute for Dryland Agriculture (ICAR-CRIDA) also develops the District Agriculture Contingency Plan (DACP) for 650 districts to mitigate the impact of weather related challenges and circulates to all State Agriculture Departments. The plan contains suitable technology interventions. The Department of Agriculture and Farmers Welfare also issues advisory to the States for creating awareness campaign and to implement contingency plan as per local need.
 
Central Water Commission (CWC) monitors live storage status of 150 important reservoirs in the country and issues weekly bulletin on every Thursday. Weekly Bulletin is shared with the Water Resource (WR) Departments of concerned states and also uploaded on the CWC website. This weekly bulletin is also shared with Inter Ministerial Crop Weather Watch Group (CWWG) to review the status of Reservoir Storage in the country to assess agricultural activities and to suggest remedial measures to states in case of distress situation. Whenever the percentage of departure of current storage of all reservoirs under CWC monitoring in a state falls below 80% of Normal (Average Storage of last Ten years), Advisory is issued to the State Government for judicious use of available water.
 
This information was given by the Union Minister of Agriculture and Farmers’ Welfare, Shri Arjun Munda in a written reply in Lok Sabha today.

 Source:  pib.gov.in
20 Dec, 2023 News Image India s lentils output may rise on higher yield, says trade.
The production of masur (lentils) will likely increase this crop year (July 2023-June 2024) with favourable weather supporting the crop despite the acreage trailing marginally till mid-December compared with the year-ago period.
 
The India Pulse and Grains Association (IPGA), in its latest market update, said the forthcoming domestic masur crop is projected to have higher yields due to favourable weather conditions in Madhya Pradesh and Uttar Pradesh, the key producing States. The upcoming crop period of December-January is crucial for plant growth and the yield potential hinges on the soil moisture availability. 'If nothing goes wrong on the weather front, we should have a crop of 16.5-17 lakh tonnes, higher than last year’s 15.5 lakh tonnes,' said Bimal Kothari, Chairman, IPGA.
 
Sowing down a tad
At the rabi outlook webinar of Friday, Manek Gupta, Managing Director, Viterra India Pvt Ltd, said crop conditions in most growing areas were pretty good and that the expectation was yields of lentils may be higher and the crop could be higher by 5-10 per cent this year. 'We can look at crop of 16.5 lakh tonnes or in that vicinity,' he said.
 
Per the Agriculture Ministry data, sowing of lentils has taken place on 16.75 lakh hectares (lh) as of December 15, marginally lower than the same period last year’s 16.84 lh.
 
'The expected acreage this year is 18.5-19 lh, almost similar to last year. Farmers have received healthy prices and the minimum support price has been increased by 10 per cent. All the signals have gone to the farmers and that they should be planting more,' Gupta said.
 
Higher MSP
The Government has increased the MSP of lentils to ?6,425 per quintal for the rabi marketing season 2023-24, up from the previous year’s ?6,000. However, the current prices are ruling around ?5,800-5,900 levels. 'There is 3.5 months for harvest. We really need to see how prices will be move between now and the harvest window,' he said.
 
The Government has bought almost half a million tonnes of lentils from the trade. According to the estimates, the government is holding stocks of 6.5 lakh tonnes of lentils. From a supply and price perspective, the government will be an important player in the lentils market, Gupta said. 'Last year, the government bought 1.5 lakh tonnes from the farmers and this year they will probably buy more considering how much lower the price is compared to the MSP,' he said.
 
Rahul Chauhan of Igrain India also said that the lentils crop condition is good and that we can see a production of over 14 lakh tonnes. Due to the huge increase in imports of lentils and also due to last year’s good crop, the market is range-bound, Chauhan said.
 
Kothari said the lentils imports this year have been more than a million tonnes. The monthly consumption of lentils is about 2 lakh tonnes, Kothari said, adding that the supply situation was comfortable.

 Source:  thehindubusinessline.com
20 Dec, 2023 News Image Financial Assistance for Setting up of Cold Storages.
The State/UT-wise details of the financial assistance provided for setting up of cold storages for perishable horticultural produce during last five years are at Annexure-I.
 
As per the study conducted by NABARD Consultancy Services (NABCONS) in 2015 on 'All India Cold-chain Infrastructure Capacity (AICIC-2015)', required capacity of cold storages at that time was 351.00 lakh MT against the existing capacity of 318.23 lakh MT in 2014. As per available information, currently, there are 8653 cold storages in the country with the capacity of 394.17 lakh MT. The State/UT-wise details of Cold Storages are at Annexure - II.
 
Government is implementing various schemes under which financial assistance is available for setting up of cold storage for perishable horticultural produce throughout the country. Though, to avoid damage to the agriculture/horticulture produce, besides Cold Storage, financial assistance is also provided for setting up of Pre-cooling Unit, Cold Room, Pack Houses, Integrated Pack House, Preservation unit, Reefer Transport, Ripening Chamber etc. under Mission for Integrated Development of Horticulture (MIDH). The components are demand/entrepreneur driven for which Government assistance in the form of credit linked back ended subsidy is available at the rate of 35% of the project cost in general areas and at the rate of 50% of the project cost in hilly and scheduled areas through respective State Horticulture Missions (SHMs).
 
This information was given by the Union Minister of Agriculture and Farmers’ Welfare, Shri Arjun Munda in a written reply in Lok Sabha today.

 Source:  pib.gov.in
20 Dec, 2023 News Image Details of One District One Product Brands.
As part of Atmanirbhar Bharat Abhiyan, Ministry of Food Processing Industries (MoFPI) is implementing a centrally sponsored 'PM Formalisation of Micro Food Processing Enterprises (PMFME) Scheme' for providing financial, technical and business support for setting up / upgradation of micro food processing enterprises in the country. The scheme is operational for a period of five years from 2020-21 to 2024-25 with an outlay of Rs. 10,000 Crore. Scheme primarily adopts One District One Product (ODOP) approach to reap the benefit of scale in terms of procurement of inputs, availing common services and marketing of products. It provides the framework for value chain development and alignment of support infrastructure.
 
The scheme aims to enhance the competitiveness of existing individual micro-enterprises in the unorganized segment of the food processing industry and promote formalization of the sector.
 
The objectives of the scheme are to build capacity of micro enterprises through increased access to credit, integration with organized supply chain by strengthening branding and marketing, increased access to common services, strengthening of institutions, research & training in the food processing sector.
 
Credit linked subsidy has been sanctioned to 12,024 numbers of micro food processing units based on ODOP in the country under PM Formalisation of Micro food processing Enterprises (PMFME) Scheme, out of which 109 units are in Rajasthan, 756 units are in Uttar Pradesh, 69 units are in Gujarat and 240 units are in Odisha.
 
The growth of ODOP units and other groups under the PMFME scheme is assessed and monitored through regular follow up/review meetings with States/UTs, lending banks, concerned Ministries/Departments and other stakeholders. Handholding support is also provided to beneficiaries under the PMFME Scheme.
 
Under Branding and Marketing component of the PMFME Scheme, support is provided to FPOs (Farmer Producer Organizations)/ Self-Help Groups (SHGs) / Cooperatives or Special Purpose Vehicle (SPV) of ODOP based micro food processing enterprises for Market Study and Product Standardization, Packaging Material, Quality Control and food safety adherence for consumer retail sales, Warehousing and Storage Rentals, Marketing and Promotion. Till 30th November, 2023, 14 ODOP brands have been launched in the country as per the details at Annexure-I. 
 
The details of financial support provided to various beneficiaries in Pali, Deoria, Jhansi, Pratapgarh, Navsari and Balasore Parliamentary Constituencies under the PMFME Scheme is as at Annexure-II.
 
Under Capacity Building component of PMFME Scheme, training is being provided on 'entrepreneurship development' and 'food processing' to the beneficiaries of credit linked subsidy which includes FPOs/SHGs/Cooperatives etc.
 
Till 30th November 2023, 54,767 beneficiaries have been trained including members of FPOs/SHGs/Cooperatives.

ANNEXURE-I

Details of ODOP Brands launched under PMFME Scheme

Sl.No

State/UT

Product

Brand

Brand Ownership

1

Bihar

Makhana (Darbhanga, Madhubani)

Makhana King

NAFED

2

Delhi

Bakery Products (West Delhi)

Dilli Bakes

NAFED

3

UP

Multi Flora Honey (Saharanpur)

Madhu Mantra

NAFED

4

Rajasthan

Coriander Powder (Kota)

Cori Gold

NAFED

5

J&K

Lal Mirch Powder (Kulgam)

Kashmiri Mantra

NAFED

6

Haryana

Amla Juice (Gurugram)

Amrit Phal

NAFED

7

Maharashtra

Raagi Flour (Thane)

Somdana

NAFED

8

Uttar Pradesh

Multi Flora Honey & Lemon Honey (Saharanpur)

Madhurmithas

NAFED

9

Punjab

Mango Pickle (Amritsar)

Mixed Pickle

Pind Se

NAFED

10

Meghalaya

Spicy Dried Pineapple (Ri Bhoi)

Anaras

NAFED

11

Punjab

Jaggery, Pickle and Murraba (Amritsar, Hoshiarpur, Gurdaspur, Fatehgarh Sahib and SAS Nagar)

Aasna (SPV)

Punjab Agro Unati Grameen Marketing Pvt. Ltd. (PAGMARK)

12

Maharashtra

Raagi (Nandurbar and Thane), Sorghum (Solapur) and Tomato (Pune and Latur)

Bhimthadi

 (SHG)

Bhimthadi Foundation

13

Karnataka

Millet based products (Davanagere)

Seemi

Davanagere & Chitradurgadistricts Organic Farmers Cooperative Federation (DCOFCF)

14

Karnataka

Red gram based products (Kalaburgi)

Bhima

Karnataka State Pulses Abhivrudhi Mandali Ltd.

 

ANNEXURE-II

Details of financial support provided to various beneficiaries in Pali, Deoria, Jhansi, Pratapgarh, Navsari and Balasore Parliamentary Constituencies under the PMFME Scheme

Sl.No

Parliamentary Constituencies

District

Loan sanctioned for Credit linked subsidy to beneficiaries

Seed capital sanctioned to SHG members

No .of beneficiaries

Amount

(Rs. in crores)

No. of SHG Members

Amount

(Rs. in crores)

1

Pali

Pali

10

1.80

164

0.80

 

 

Jodhpur

38

6.40

55

0.21

 

 

Total

48

8.20

219

1.01

 

2

Deoria

Kushinagar

90

9.20

8

0.03

 

 

Deoria

34

2.01

160

0.55

 

 

Total

124

11.21

168

0.58

 

3

Jhansi

Jhansi

56

6.60

22

0.08

 

 

Lalitpur

16

1.20

42

0.16

 

 

Total

72

7.80

64

0.24

 

4

Pratapgarh

Pratapgarh

97

12.70

109

0.37

 

5

Navsari

Navsari

8

0.85

11

0.01

 

 

Surat

40

11.10

83

0.13

 

 

Total

48

11.95

94

0.14

 

6

Balasore

Mayurbhani

6

0.82

465

0.99

 

 

Balasore

48

3.30

1031

3.70

 

 

Total

54

4.12

1496

4.69

 

This information was given by the Minister of State for Food Processing Industries Km. Shobha Karandlaje in a written reply in the Lok Sabha today.

 


 Source:  pib.gov.in
20 Dec, 2023 News Image We are unique in several agricultural products: Dir Agr.
Director of Agriculture Kashmir Chowdhury Mohammad Iqba Tuesday inaugurated a capacity-building programme on branding and packaging of APEDA scheduled products at Agriculture Complex Lalmandi.
The Agricultural and Processed Food Products Export Development Authority (APEDA) organized the event. The event was attended by worthy Director Agriculture Kashmir Chowdhury Mohammad Iqbal, Joint Director Agriculture Kashmir (Inputs) Tabassum Naz, Joint Director Agriculture Extension G.M Dhobi, Deputy Director Central Wahid ur Rehman, Deputy Director HPM Ms Nahid, Representatives of APEDA madam Fatima and other senior officers of the department.
Speaking on the occasion Director Agriculture highlighted the importance of value addition and marketing strategies of agricultural and processed products at national and international level.
Director Agriculture said that because of our special agro climatic conditions we are unique in many agricultural products. He asked the participants to shift their focus towards the processing and value addition of Agriculture products. He appreciated APEDA for organizing such events and said that such events provide an opportunity to the agri-entrepreneurs for the exchange of ideas.
He impressed upon the APEDA to organize more such programmes in coming times so that more and more educated youth could be attracted towards this initiative.

 Source:  brighterkashmir.com
20 Dec, 2023 News Image Indian economy to grow 6.3% in FY24 and FY25: IMF.
Indian economy is likely to log 6.3% growth in FY24 and FY25 on the back of macroeconomic and financial stability, International Monetary Fund’s Executive Board said Tuesday.
 
'India’s economy showed robust growth over the past year. Headline inflation has, on average, moderated although it remains volatile. Employment has surpassed the pre-pandemic level and, while the informal sector continues to dominate, formalisation has progressed,' the Article IV consultation conducted by its Executive Board noted.
 
The international fund lauded the macroeconomic policies and reforms of the government, stating that India could achieve even higher growth, with greater contributions from labour and human capital, with the implementation of structural reforms.
 
'The country’s foundational digital public infrastructure and a strong government infrastructure program will continue to sustain growth,’ it said.
 
IMF’s growth projection is much lower than the Reserve Bank of India’s Monetary Policy Committee growth forecast of 7% for FY24. The MPC revised its growth numbers in December owing to a strong performance in the first half.
 
The Indian economy averaged 7.7% growth in the first two-quarters of the fiscal due to strong consumption demand and rising investment.
 
'Stronger than expected consumer demand and private investment would raise growth. Further liberalization of foreign investment could increase India’s role in global value chains, boosting exports. Implementation of labour market reforms could raise employment and growth,' the IMF said.
 
The multilateral body expects investment to rise to 31.9% of GDP by FY25 and savings to rise to 30%.
 
However, it also noted that a sharp global slowdown could affect growth and weather shocks could impact inflation.
 
India’s inflation rose to 5.6% in November after declining to 4.9% in the previous month because of a rise in food prices. Food price shock is likely to keep inflation around the 6% level in December as well, say experts.
 
IMF expects inflation to decline to 5.4% in FY24 from 6.7% in the previous year. It is further expected to fall to 4.6% in FY25.
 
'Directors commended the Reserve Bank of India’s (RBI) proactive monetary policy actions and strong commitment to price stability. They agreed that the current neutral monetary policy stance, anchored on a data-dependent approach, is appropriate and should gradually bring inflation back to target,' the report noted.
 
The MPC kept the policy rate on hold at 6.5% for the fifth consecutive time at its December meeting.
 
The IMF also called for prudential tools to preserve financial stability and manage emerging vulnerabilities, including rapid growth in unsecured personal loans.
 
The Reserve Bank of India recently tightened underwriting norms for unsecured loans.
 
Fiscal steadiness and climate resilience
On the fiscal front, the IMF welcomed the government’s efforts to ramp up capital spending while tightening the fiscal stance.
 
'Improving revenue mobilization and spending efficiency would allow for continued improvements in digital and physical infrastructure and targeted social support,' the directors pointed out.
 
They also highlighted the need to establish a sound medium-term fiscal framework.
 
The government plans to reduce the fiscal deficit to 4.5% of GDP by FY26. The IMF projects the government to achieve its fiscal deficit target of 5.9% in FY24 but a marginal decline to 5.6% in FY25.
 
'Continued progress on designing and implementing climate policies is also critical to meet the authorities’ net zero emissions target date,' the directors said, batting for greener growth.
 
India has set a net zero target for 2070.
 
On growth track:
-GDP growth stable at 6.3% for FY24 and FY25
-Inflation to decline to 4.6% in FY25
-Fiscal deficit target to be met
-Need structural reforms in land and labour
-Infra push and digital public infra to sustain growth

 		 FY23
 		 FY24
 		 FY25
 
GDP growth (%, y-o-y)
 		 7.2
 		 6.3
 		 6.3
 
Inflation (%, y-o-y)
 		 6.7
 		 5.4
 		 4.6
 
Fiscal deficit (% of GDP)
 		 6.4
 		 5.9
 		 5.6
 
Source: IMF
 
 
 		  

 


 Source:  economictimes.indiatimes.com
20 Dec, 2023 News Image India negotiating trade pact with EU, UK, Sri Lanka, Peru.
India is negotiating free trade agreements with the European Union (EU), the UK, Sri Lanka, and Peru, according to a year-end review statement of the commerce ministry. India-European Union (EU) free trade agreement negotiations were formally re-launched on June 17 2022.
 
'Negotiations cover 23 policy areas/chapters. Six rounds of negotiations have been held till October 2023,' the ministry said.
 
With the UK, 13 rounds of talks have been completed and the next round will take place in January 2024.
 
'India-Sri Lanka Economic and Technology Cooperation Agreement (ECTA) negotiations are ongoing with the 12th round of negotiations conducted from 30th October to 1st November 2023 in Colombo,' it said.
 
It added that both sides also agreed to continue discussions on matters, including apparel quotas and pharmaceutical procurement.
 
With Peru, it said discussions on various chapters, including rules of origin, trade in goods, trade facilitation, sanitary, and phytosanitary measures were undertaken during this special round of talks.

 Source:  economictimes.indiatimes.com
20 Dec, 2023 News Image Roses from eastern UP to bloom in UAE, 1st consignment sent.
Fresh roses from eastern UP (Purvanchal) will spread their fragrance in UAE, with the first-ever consignment of fresh roses from the region being exported to the Gulf nation on Tuesday.
A 3.5 MT consignment, comprising 200 kg roses and seasonal green peas, carrots and other vegetables, was sent through Agricultural and Processed Food Products Export Development Authority (APEDA), ministry of commerce and industry from the Lal Bahadur Shastri International airport.
 
Besides, 50 sticks of sugarcane were also exported as sample.
APEDA chairman Abhishek Dev said despite trade restrictions on potential produce like wheat and rice, APEDA's efforts have propelled UP to become the third-largest exporting state in financial year 2023-24, after Gujarat and Maharashtra. He emphasised APEDA’s successful tapping of the Gangetic belt’s potential, facilitating FPOs and exporters to boost agri-exports from the region. The overall development of the agri-export model has seen collaboration with UP Mandi Parishad for export infrastructure development in Lucknow, Amroha, Saharanpur, Varanasi, and now in Gorakhpur.
He further said due to consistent efforts of both the Central and State Governments in the Purvanchal region, there has been a noteworthy increase in the movement of perishable cargo from Varanasi airport. Until November 23, the airport handled 598 MT of perishable cargo, surpassing the 561 MT cargo recorded in the entire fiscal year of 2022-23. The growth indicates a remarkable advancement in the region's agri-export capabilities. The APEDA organised a brainstorming session with Farmer Producer Organizations (FPOs), coinciding with the flag-off ceremony of the export of fresh roses. The session aimed at positioning Varanasi on par with coastal states renowned for agri-exports across the nation.
During the session, officials had detailed discussions with stakeholders focusing on refining the agri-export model. Despite challenges posed by COVID restrictions, APEDA has successfully launched new, indigenous, and GI tagged products from Uttar Pradesh to international markets.
Various agricultural products, including fresh fruits and vegetables (such as Green Chilies, Mangoes, Okra, Potato, Water Chestnut, Cranberry, Banana, Jimikand, Ivy Gourd, Bottle Gourd, Pointed Gourd, Arvi, Ginger), fresh marigold, and rice, have been exported, showcasing the region's ability to meet global demand.
 
He said aligned with PM Narendra Modi's 'vocal for local' and 'Atmanirbhar Bharat' initiatives, APEDA has focused on promoting the export of locally sourced agricultural products. This effort has resulted in a substantial increase, from almost zero exports in 2019 to 598 MT in the first eight months of 2023-24 fiscal year. The LBSI Airport in Varanasi has witnessed monthly agri-exports exceeding 100 MT in November 2023.
The region has become a preferred export destination for horticultural products, catering to gulf countries, european nations, Nepal, and Bangladesh.
Recognizing the pivotal role of FPOs as aggregators of farm produce, APEDA has shifted focus to capacity building for direct exports. Approximately 92 FPOs in UP have been promoted as exporters, with over 20 actively engaged in direct or deemed exports. More than 100 training and sensitization programmes have been conducted for FPOs to enhance their farming practices.
The APEDA chairman said APEDA's proactive efforts have also positioned Uttar Pradesh as a major player in the national agri-export landscape.
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 Source:  timesofindia.indiatimes.com
20 Dec, 2023 News Image Details of Millet (Shree Anna) Mahotsavs in International Year of Millets 2023.
As part of the International Year of Millets (IYoM) 2023, Ministry of Food Processing Industries (MoFPI) has organized a series of Millet (Shree Anna) Mahotsavs in 27 districts spread across the country. The details of the Mahotsavs is placed at Annexure. Also, Shree Anna was one of the focus areas in World Food India (WFI), 2023 organized during 3-5 November, 2023 in Pragati Maidan New Delhi.
 
MoFPI is also strengthening Shree Anna Processing & Preservation Infrastructure in the country through its schemes.  30 Shree Anna based proposals, including proposals from 8 large entities and 22 MSMEs, have been approved for assistance under Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) with an outlay of Rs 800 Cr.  A total of 1745 loans have been sanctioned amounting Rs. 90.80 Cr for individual Shree Anna processing units under PM Formalization of Micro Food Processing Enterprises (PMFME) scheme.  MoFPI has also identified 19 districts with Shree Anna Products as One District One Product (ODOP) under its PMFME scheme and has approved 3 Marketing & Branding proposals for Shree Anna Products. Also, 17 incubation centres have been approved in 10 states having Shree Anna Processing lines.
 
Wide spectrum of domestic and overseas stakeholders participated in World Food India 2023, which included 1208 exhibitors, 14 international delegations including 7 Ministerial delegations, 715 overseas and 218 domestic buyers, 97 corporate leaders, 10 Union Ministries/ Departments, 6 Commodity Boards apart from 25 States / UTs. Netherlands was the Partner Country and Japan the Focus Country of the Event. Total Investment interests announced & MoUs signed during the World Food India 2023 amounts to Rs. 33,129 Crore.

 Source:  pib.gov.in
19 Dec, 2023 News Image Nepal to request India for onion supply.
As customers scramble to find onions in the markets following a sweeping export ban by India, the Nepal government has decided to request India to send the major kitchen ingredient.
 
'As per the request by onion traders, we have decided to request the Indian government to send onion to Nepal. We will send the request soon,' said an official in the Industry Ministry.
 
On December 8, after wheat, rice and sugar, India added dry onions to its list of food staples slapped with sweeping export restrictions.
 
The move aimed at containing domestic prices ahead of the national election next year will greatly affect Nepal.
 
Nepal gets almost all of its onion requirement from the southern neighbour, and any ripple there is amplified when it reaches the Nepali bazars.
 
As per the Indian government directive, the export of onions will also be allowed based on permission granted by the government of India to other countries based on the request of their governments.
 
Nepali government officials say that they are also discussing with onion importers to source the spice from other countries too.
 
Importing large quantities of onion from other countries, other than India, is not possible because it is a perishable commodity, said the government officials. 'As no government bodies import onions, our role is to facilitate the importers,' said the officials.
 
'However, if it takes time to get the approval from the Indian government, we have an option to import from third countries, including China.'
 
As soon as India slapped a sweeping ban on onion export, onion prices reached Rs200 per kg in retail. The price, currently, is hovering at Rs150 to Rs160 per kg in retail.
 
Traders say that the ban, however, has increased smuggling through the porous border points.
 
On Sunday, police in Kavrepalanchok district seized more than 400 sacks of onions from Kavre Bhanjyang of Dhulikhel Municipality.
 
The police seized seven vehicles carrying 16 tonnes of onion that were illegally imported using an old invoice, said Deputy Superintendent of Police Raj Kumar Shrestha, spokesperson at the District Police Office Kavre.
 
The seized onion has been sent to the Department of Revenue Investigation.
 
The officials at the Kalimati fruits and vegetables market said that traders are illegally importing onions in the border areas. 'But it is in small quantities.'
 
As onions imported from China are not much in demand in the Nepali market because of their taste, Nepali consumers prefer Indian onions and they are willing to pay any cost for it, traders said.
 
'We are waiting for the government's response to ease the supply system,' said Mohan Baniya, president of the Potato-Onion Import-Export and Wholesaler Association.
 
'If the issue is not sorted out in time, the shortage may cripple,' he said.
 
The association met the director general of the Department of Commerce, Supplies and Consumer Protection a week ago and requested to ease the supply through the negotiation.
 
'We have been assured that the supply system will be eased,' said Baniya.
 
According to the traders, a few tonnes of Chinese onion may arrive in the market in a few days.
 
Ananda Raj Pokharel, director of the Department of Commerce, Supplies and Consumer Protection, said there have been no concrete efforts to import onions. 'But the onion traders have requested us that the spice can be imported from China or Pakistan or other countries.'
 
Though there is an export ban, the Kalimati Fruits and Vegetables Market received 20 tonnes of onion on Sunday.
 
'We are not sure where the onions are coming from,' said Binay Shrestha, information officer at the Kalimati market, Nepal’s largest vegetables and fruits wholesale marketplace.
 
'The traders are supplying onions through their contacts. It could be either old stock or smuggled one.'
 
In India, onion is being traded at around IRs70 per kg.
 
During normal times, 80 to 100 tonnes of onions arrive in the Kalimati market, Shrestha said.
 
In November 2019, the price of onion hit a new high of Rs250 per kg in Kathmandu Valley after India slapped a ban on onion exports in September of the same year to maintain domestic availability.
 
The ban caused a severe shortage of onions all over Asia including Nepal. The embargo was lifted in March 2020. India again stopped onion exports from September 2020 to January 2021.
 
According to the Department of Customs, Nepal imported 180,190 tonnes of onions worth Rs6.75 billion from India in the last fiscal year.

 Source:  kathmandupost.com