Pak softens stand; Onion prices fall in Mumbai

Onion prices on Monday took a sharp downturn in Mumbai, while Pakistan is expected to resume onion export to India soon.

According to reports highly places sources in Pakistan Ministry of Food and Agriculture said it might soften its stand and onion consignments to India.

However, the sources said, Pakistan’s Commerce and Foreign Ministries are against this decision.

Back in India, at Agricultural Produce Market Committees (APMC) Market of Vashi, located on the outskirts of Mumbai, farmers directly brought their onions in 160 trucks from the farm and sold them at as low price as Rs. 10 per kg on Monday, resulting in a heavy drop in the high price of onions that has been effecting the household for quite some time, reports said.

Meanwhile, the onion traders in Nashik who had decided not to purchase onions for the next two days from APMC to protest Maharashtra government’s directive that onions should not sell over Rs 40 per kg, have withdrawn their agitation after getting assurances form the government.

Earlier, on Friday, Indian External Affairs minister SM Krishna said the prices of onion may reduce further in the coming days as Pakistan has decided to lift its ban on export of onions to India.

Addressing a press conference, Krishna said, ?We have initiated talks and before not too long we are hopeful we will find a solution to this easing pressure within our country for onions.?

Pakistan agreeing to send onions to India is expected to help in bringing down its escalating price, which has also pushed the food inflation rate upwards in the country.

Pakistan had banned onion export to India after the latter had stopped export of cotton.