Onion prices saw an unprecedented rise after excess rains ravaged the cash crop plantations in Maharashtra’s Nashik, which has the largest area for the cultivation of onions in the country, and fears of a possible dearth of the essential vegetable in the market spiked prices.
The government had created a buffer stock of 56,000 tonnes for the current year but it was not sufficient to contain the prices which are still ruling above Rs 100 per kg in most cities across the country. As a result, the government was compelled to import through state-run MMTC.
Delayed and prolonged rains are the main reason for damage to onion crops, Minister of State for Consumer Affairs, Food and Public Distribution, Dadarao said during Question Hour.
MMTC is importing onions on the behalf of the government, which is trying to check prices of the key bulb by improving domestic supplies through various modes, including imports.
States could directly take the imported stock from the location and also have the option of getting transportation facilitated through NAFED, if required.
Last week, the Union Cabinet decided to import 1.2 lakh tonnes of onions to improve the domestic supply and control prices, which touched Rs 100 per kg earlier this month. Retail prices are ruling at around Rs 70 per kg in the national capital.
While trading firm MMTC will import onions, cooperative Nafed will supply the key kitchen item in the domestic market. The decision was taken at a meeting of committee of secretaries held on Saturday.
This is the second tender the agency has floated. It had not received response from the bidders for the first tender issued for import of 2,000 tonnes.
Positive global cues helped Indian markets climb crucial resistance levels for the week ended September 14, but the big move was seen in the small & midcaps space.
The company had posted a net profit of Rs 13.66 crore during the corresponding period of the previous year, MMTC said in a regulatory filing to the BSE.
The previous tender deadline was Tuesday, July 9
The volume purchased will be decided by MMTC later depending on the level of prices received but minimum offers are 24,000 tonnes to 25,000 tonnes.
The volume purchased in the tender will be decided by MMTC depending on the level of prices received.
Total income from operations in the reported quarter stood at Rs 7,107.66 crore, compared with Rs 3,110.71 crore in the year-ago period.
The volume purchased will be decided by MMTC later, depending on the level of prices received, but minimum offers are 20,000 tonnes.
India imposes 60 percent tax on overseas buying of corn but under the tariff rate quota it can allow imports at lower or zero duty.
The company had posted a profit of Rs 11.6 crore in the year-ago period, MMTC said in a BSE filing.
The ministry had also suggested that the government bear the expenses for VRS (voluntary retirement scheme) to be offered to about 600-700 employees of STC.
The market breadth was in favour of the declines with 437 stocks advancing while 1138 declined and 454 remained unchanged. On the other hand, in the BSE, 580 stocks advanced and 1258 declined and 82 remained unchanged.
The market breadth was in favour of the declines with 843 stocks advancing while 901 declined and 292 remained unchanged. On the other hand, in the BSE, 1210 stocks advanced and 1539 declined and 152 remained unchanged.
"That is something which is already on cards because STC unfortunately has become a sick company. Therefore, there are some measures which are being taken already and this matter is under process," Prabhu told PTI.
The reaction to the US-China trade war on equity markets was nothing short of a bloodbath. Asian markets plunged while back home Sensex and Nifty recorded a cut of over 1 percent. The rout witnessed by the Indian market on Friday has eroded Rs 1.57 crore of investor wealth.