NAFED floats new tender to import 10,000 tonnes onion

Cooperative NAFED has re-invited bids for import of 10,000 tonnes of onions from countries like Pakistan, China and Egypt after it failed to attract any supplier in the previous tender. Onion prices are on rise due to mismatch in supply and demand. For instance, retail prices of onion in the national capital have gone up to Rs 60 per kg. A similar trend prevails in other parts of the country. "There was no response to the earlier tender. So, NAFED has again floated a new tender for import of 10,000 tonnes of onion," Agriculture Secretary Siraj Hussain told agency.

Currently, onion prices are being controlled by increase in supply in the national capital and other price-sensitive markets via agencies like Small Farmers Agribusiness Consortium (SFAC) and National Agricultural Cooperative Marketing Federation of India (NAFED), he said. The availability of imported onions would further improve supplies and check price rise, he added. As per the tender, NAFED has invited bids for import of 10,000 tonnes of onions from Pakistan, China, Egypt or any other country meeting Indian import regulations.

The bids should be submitted before August 27 and they will be disclosed on the same day. The onion should be supplied within 30 days from the date of confirmed purchase order. The exact supply order will be regulated in units of 500 tonnes depending upon the requirement, it said.

The supply will be delivered after custom clearance at designated NAFED warehouse in Mumbai and other major cities and state capitals. Interested parties for importing onions should offer rates on cost and freight per tonne (after custom clearance at NAFED designated warehouses), it added. Onion prices are rising due to the fall in production and sluggish supply of stored onions, meant for meeting the demand during the lean period of July-September.

Total onion production is estimated to be lower at 189 lakh tonnes in 2014-15 crop year (July-June), slightly lower than 194 lakh tonnes in the year-ago. Maharashtra, Karnataka and Madhya Pradesh are the top three onion producing states in the country.