The government has decided to import onions from ‘Pakistan, Egypt, China, Afghanistan or any other origin’, according to a Metals and Minerals Trading Corporation Limited notifications. Some concerns were raised about importing from Pakistan. According to an article in The Wire, the move itself reveals a deep-seated pro-consumer and anti-producer bias that has been, in large part, the reason for the agriculture economy being in doldrums.
Farmer leader Raju Shetty was quoted as saying by the Indian Express: “And why import from Pakistan? Is the Indian farmer a bigger enemy?”
But those concerns might be overstated as India-Pakistan trade remains suspended. In August, Pakistan suspended all trade with India. Earlier, in February India had hiked customs duty on all goods imported from Pakistan to 200%.
So, for onions to be imported from Pakistan it would require the government of India to do two things:
1. Ease the import duty
2. Request the government of Pakistan to allow export of onions
Both seem unlikely and would probably be unpopular with voters. India can still import onions from other countries as the tender has kept that option open.
MMTC not to import onions from Pakistan over Kashmir
Amid protest, state-owned MMTC has barred suppliers from sourcing onions from Pakistan while modifying its tender for import of 2,000 tonnes of the staple goods. Last week, MMTC had issued a tender for import of onions from Pakistan, Egypt, China, Afghanistan or any other origin which created uproar from farmers and political bodies.
Subsequently, MMTC modified its tender saying that the bidder should import onions from "any country of origin excluding Pakistan".
According to the MMTC tender, bids should be submitted before September 24 and will remain valid till October 10. The shipments should reach port by the last week of November.
