China outbids India, bags Lankan onion export order
Sunday, 4 November 2007
COLOMBO, Nov 3 (PTI): Sri Lanka has decided to import 20,000 metric tonnes of big onions from China to augment its domestic supplies in the wake of high inflation prevailing in the island country.
India, which is facing a dip in overseas sales due to increase in export price of the commodity by the government, is also exploring the global market for export of big onions.
The Indian government had hiked export price of the bulb to discourage overseas sales to curb rising domestic prices of the commodity.
However, it is now considering cutting the minimum export price of onion for November due to increased arrivals.
A spokesman of Sri Lanka's Essential Food Importers Association said 20,000 metric tonnes of big onion from China would reach Colombo harbour by the end of next week.
India's total onion exports during the first half (April- September) of the current fiscal fell to 3.84 lakh tonnes against 6.05 lakh tonnes in the corresponding period last year, according to the Nashik-based National Horticulture Research and Development Foundation.
Sri Lanka, which is battling inflation, decided to reduce import tax on big onions up to Rs. 5 per kilo to increase domestic availability of the commodity.
The island nation's inflation was 17.5 per cent in September - its highest in 13 years, rising from 17.3 per cent in August this year and way above 11.2 per cent in September last year.
India, which is facing a dip in overseas sales due to increase in export price of the commodity by the government, is also exploring the global market for export of big onions.
The Indian government had hiked export price of the bulb to discourage overseas sales to curb rising domestic prices of the commodity.
However, it is now considering cutting the minimum export price of onion for November due to increased arrivals.
A spokesman of Sri Lanka's Essential Food Importers Association said 20,000 metric tonnes of big onion from China would reach Colombo harbour by the end of next week.
India's total onion exports during the first half (April- September) of the current fiscal fell to 3.84 lakh tonnes against 6.05 lakh tonnes in the corresponding period last year, according to the Nashik-based National Horticulture Research and Development Foundation.
Sri Lanka, which is battling inflation, decided to reduce import tax on big onions up to Rs. 5 per kilo to increase domestic availability of the commodity.
The island nation's inflation was 17.5 per cent in September - its highest in 13 years, rising from 17.3 per cent in August this year and way above 11.2 per cent in September last year.