India bans onion exports; subcontinent has eye-watering prices

Agencies
October 3, 2019

Mumbai, Oct 3: From Kathmandu to Colombo, it's a kitchen nightmare: Onion prices have gone crazy.

That's because India, the world's biggest seller of the Asian diet staple, has banned exports after extended Monsoon downpours delayed harvests and supplies shrivelled. And dedicated buyers across the region, like Nepalese housewife Seema Pokharel, are flummoxed.

"This is a terrible increase," said Pokharel, out shopping for vegetables in Kathmandu. "Onion prices have more than doubled in the last month alone."

Whether it's Pakistani chicken curry, Bangladeshi biryani or Indian sambar, Asian consumers have developed a serious dependence on Indian onion supplies for go-to dishes. Shorter shipment times than from rival exporters like China or Egypt play a crucial role in preserving the taste of the perishable commodity.

But last Sunday New Delhi banned all exports from India after local prices jumped to 4,500 rupees ($63.30) per 100 kg, their highest in nearly six years, due to the delay in summer-sown crop arrivals triggered by longer, heavier rains than usual.

Since the ban, countries such as Bangladesh have turned to the likes of Myanmar, Egypt, Turkey and China to increase supplies in a bid bring prices down, government officials and traders said.

But the hefty volumes lost will be hard to replace.

India exported 2.2 million tonnes of fresh onions in the 2018/19 fiscal year ended March 31, according to data from India's Agricultural and Processed Food Products Export Development Authority. That's more than half of all imports by Asian countries, traders estimate.

'TAKING ADVANTAGE'

Rising prices of alternative supplies will add to the headache for importers trying to get the vegetable from elsewhere, said Mohammad Idris, a trader based in Dhaka. In the Bangladesh capital, consumers are now being asked to pay 120 taka ($1.42) per kilogramme for their prized onions - twice the price a fortnight ago and the highest since December, 2013.

"Prices are going up elsewhere in Asia and Europe," said Idris. "Other exporting countries are taking advantage of the Indian ban" to raise their asking price.

In response to the crisis, the government of Bangladesh has initiated sales of subsidised onions through the state-run Trading Corporation of Bangladesh (TCB).

"We are looking for all possible options to import onions. Our target is to import in the shortest possible time," said TCB spokesman Humayun Kabir.

But the shipments from elsewhere - Iran and Turkey are also potential suppliers - that authorities in countries across the region are investigating will all take time.

"It takes one month when it comes from Egypt and about 25 days from China, while it takes only a few days from India," said Dhaka trader Idris.

The need for alternative imports is so severe, though, that countries like Sri Lanka have already placed orders with Egypt and China, said G Rajendran, president of the Essential Food Commodities, Importers and Traders Association.

Onion prices in Sri Lanka have risen by 50% in a week, to 280-300 Sri Lankan rupees ($1.7) per kilogramme.

'DOUBLE THE PRICE'

For other countries, there may be little option but to sit tight and hope for the best.

Malaysia, the second-biggest buyer of Indian onions, expects the ban to be temporary and sees no reason to panic, said Sim Tze Tzin, deputy minister of agriculture.

But even India has been importing onions from Egypt in an effort to calm prices. And there won't be any meaningful drop in prices before summer-sown crops start to hit the market, said Ajit Shah, president of the Mumbai-based Onion Exporters' Association.

That's not expected until mid-November, meaning the export ban isn't going away in the near term.

"India could resume exports once prices drop, but it will take time," said Shah. "Until India resumes exports, supplies will remain limited in Asia."

For now, consumers like Kathmandu shopper Pokharel are having to change habits across Asia.

"I went to buy 5 kilogrammes of onions for our five-member family but ended up buying only 3 kilogrammes due to higher prices," said Afroza Mimi, a Dhaka housewife on a shopping expedition the day after India imposed the export ban.

"They (traders) are selling old stock nearly at double the price. This is crazy."

($1 = 71.0900 Indian rupees) ($1 = 84.4900 Bangladesh taka) ($1 = 182.2000 Sri Lankan rupees)

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News Network
July 11,2020

New Delhi, Jul 11: India's COVID-19 case count crossed the eight lakh-mark on Saturday with yet another highest single-day spike of 27,114 new cases in the last 24 hours.

As many as 519 deaths were reported during this period.

The total number of positive cases in the country stands at 8,20,916, including 2,83,407 active cases, 5,15,386 cured/discharged/migrated and 22,123 deaths, according to the Ministry of Health and Family Welfare.

With as many as 2,38,461 COVID-19 cases, Maharashtra continues to remain the worst-affected state, followed by Tamil Nadu (1,30,261) and Delhi (1,09,140).

Meanwhile, 1,13,07,002 samples have been tested for COVID-19 till July 10. Out of these 2,82,511 samples were tested yesterday, according to the Indian Council of Medical Research (ICMR).

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News Network
June 19,2020

Jun 19: Ten Indian Army soldiers including four officers were released by the China’s People’s Liberation Army (PLA) on Friday capping three days of hard negotiations that followed the bloody battle at the eastern Ladakh’s Galwan valley on Monday.

The 10 jawans returned around 5.30 PM on Friday to Patrol Point 14 (PP-14) after Indian team leader Major Gen. Abhijit Bapat, the commanding officer of the Third Div made it clear to the Chinese that there couldn’t be any progress in the disengagement talks unless the soldiers were returned safely.

Asked to comment on the release of Indian soldiers, the Indian Army maintained silence. The force released a brief statement on Thursday stating that all its men were accounted for.

However, the extent of the brutal clash can be gauged from the fact that 76 Indian Army soldiers are still in the hospital out of which 58 soldiers have “minor injuries” and “should be back on duty within a week”, according to Army sources.

Return of the Indian soldiers has been the main point of negotiations for the last two days. The situation is now calmer at areas near PP-14 in the Galwan valley after the return of Indian soldiers even though large numbers of troops from both sides are still present in the area.

Meanwhile analysis of satellite images has revealed a large presence of Chinese troops in the northern banks of Pangong Tso, a disputed territory for years.

“In the past month, Chinese forces have become an overwhelming majority in the disputed areas (on the north bank of the 135 km long lake). Significant positions have been constructed between Fingers 4 and 5, including around 500 structures, fortified trenches and a new boat shed over 20 km further forward than previously. More structures appear to be under construction,” says a report published in the Strategist, the journal of the Australian Strategic Policy Institute.

“The scale and provocative nature of these new Chinese outposts is hard to overstate: 53 different forward positions have been built, including 19 that sit exactly on the ridge line separating Indian and Chinese patrols,” says the report, accompanied by satellite images showing overwhelming PLA presence.

The June 6 Corps Commander level meeting between the Indian and PLA armies did not result in a solution to the contentious muscle flexing by the Chinese on the shores of the Pangong lake. The meeting ended with the conclusion that more Lt Gen level talks between the two armies were needed to resolve such issues.

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News Network
March 11,2020

Rome, Mar 11: Italy has recorded its deadliest day of the coronavirus crisis despite locking down the entire country, as New York deployed the National Guard to contain a disease that has sown worldwide panic.

The hardest-hit country in Europe said its death toll from the COVID-19 virus had risen Tuesday by a third to 631, with the surging epidemic taking its toll on global sporting, cultural and political events.

While authorities in China, where the outbreak began, have declared it "basically curbed", cases are multiplying around the world, sparking panic buying in shops, and wild swings on financial markets.

China remains the hardest-hit overall with more than 80,000 cases and over 3,000 deaths, out of a global total of 117,339 cases and 4,251 deaths across 107 countries and territories, according to an AFP tally.

The virus is infecting all walks of life, including politics, with US Democratic presidential hopefuls Bernie Sanders and Joe Biden both cancelling campaign rallies and British health minister Nadine Dorries saying she had tested positive.

And amid criticism of the US authorities' response, New York deployed the National Guard for the first time during the crisis to help contain the spread of the disease from an infection-hit suburb.

There have been 173 confirmed cases in New York state, including 108 in Westchester County, home to New Rochelle where the majority of infections have been detected.

"It is a dramatic action, but it is the largest cluster in the country. This is literally a matter of life and death," said state governor Andrew Cuomo.

"People are scared, it's an unusual situation to be in," Miles Goldberg, who runs a New Rochelle bar, told AFP.

"It makes people nervous to be around others, it makes people nervous to get inside into businesses and such," he said.

In an unprecedented move, Italian Prime Minister Giuseppe Conte has told the 60 million residents of his country they should travel only for the most urgent work or health reasons.

And while squares in Milan and Rome were emptied of their usual bustle and traffic, some residents appeared uncertain if they were even allowed to leave their homes for everyday tasks like shopping.

The virus has battered tourism around the world, as people scrap travel plans, and a restaurant owner in Florence in northern Italy said that the impact on business had been catastrophic.

"We hope that we will see the end of it, because from around 140 covers a day, this afternoon, we've gone down to 20-25," Agostino Ferrara told AFP.

Pope Francis also seemed to muddy the waters, holding a mass in which he urged priests to go out and visit the sick -- something Conte has specifically discouraged.

Sporting events continued to fall victim to the virus as authorities urge people to avoid large gatherings.

Arsenal's game at Manchester City was postponed after players from the London club were put into quarantine, making it the first Premier League fixture to be called off because of the virus.

The virus has sparked doubts about the Olympics due to open in Tokyo on July 24 and the traditional flame lighting ceremony in Greece is set to be held without spectators.

In the United States, organisers rescheduled the two-week Coachella music festival for October.

The virus and the response to the crisis has prompted pandemonium on global markets with volatility not seen since the world financial crisis in 2008.

After suffering its worst session in more than 11 years at the beginning of the week, the Dow Jones Index in New York bounced back significantly, rising five percent on Tuesday.

Politicians around the world have scrambled to put together emergency packages to ease the significant financial hardships the virus is expected to cause for households and businesses.

US President Donald Trump, who is relying on a strong economy to boost his re-election hopes, promised to announce "major" economic measures on Tuesday.

The biggest item on his wish list is a cut in payroll taxes. But even allies in Congress and reportedly some aides in the White House are sceptical, questioning the cost.

Italy prepared Tuesday to let families skip mortgage and some tax payments while Japan unveiled a second emergency package to tackle economic woes stemming from the outbreak, including $15 billion in loan programmes to support small businesses.

Analysts warned of further volatility ahead however.

"It's like winding up a rubber band. The more you wind it, when you let go, the more it pops," said LBBW's Karl Haeling.

"A lot of the uncertainty goes to the root of the virus itself."

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