Export ban, flood in India cause price increment of onions

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onions indian government A worker carrying and arranging sacks of onions at an onion wholesale premise. PIX:: Noor Asrekuzairey Salim /MalaysiaGazette / 4 October 2013 onions export price increment India
A worker carrying and arranging sacks of onions at an onion wholesale premise. PIX:: Noor Asrekuzairey Salim /MalaysiaGazette / 4 October 2013

By Shawaliah Hadir

KUALA LUMPUR – The Indian Government has imposed an export ban on all onions on 14 September to support their domestic usage following the flood last July.

Minister of Domestic Trade and Consumers Affair (KDPNHEP), Datuk Seri Alexander Nanta Linggi said that only two types of onion from India are allowed to be exported, namely the Bangalore Rose and Krishnapuram.

Therefore, he said that the price increase of onions is caused by the lack of supplies.

“The price of onions is the same as other commodities, which depends on the supply and demand. If there is a lack of supply and high demand, thus, the price will increase.

“This is what happened to the onions from India and it somehow affected the total supply of onion with the exception of several types of onions such as the Holland onions,” he said in a statement today.

Based on the current situation, Alexander said that the enforcers from the KPDNHEP will continue to inspect and monitor the situation at all levels including the suppliers, wholesalers and retailers.

“KPDNHEP will not hesitate to take actions and will implement the price control within the powers of the ministry under the Anti-Profiteering (Determination of Maximum Price) (No. 2) (Amendment) 2020 if the situation requires,” he added.

He also hoped that the consumers could download the Price Catcher mobile application which enables the consumers to check the prices of goods through the application and seek closest stores to get the best price.

Earlier, he said that the import of onions is under the supervision of the Ministry of Agriculture and Food Industries (MAFI) where the KPDNHEP acts to ensure that there is no profiteering elements or unreasonable price hike in the market.

Malaysia imports onions from 29 countries where five countries are the biggest exporters namely, India (36%), Pakistan (23%), China (19%), the Netherlands (9%) and Thailand (7%).

From this amount, Malaysia imports 149,539,411 kg of onions from India and this amount is based on the choice and preference of Malaysians.

For the record, Malaysia imports eight types of onions namely the Small Red Onions (India), Big Onions (India), Red Onions (China), Small Red Onions (China), Small Red Rose Onions, Small Red Onions (Myanmar), Small Red Onions (Thailand) and Big Yellow Onions (Holland). –MalaysiaGazette

Read More:

Sufficient onions supply in Malaysia

Why Malaysia depends on India for onions?

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