S M Pillai, manager of the National Agricultural Cooperative Marketing Federation of India Ltd (NAFED), says NAFED's Dubai branch has already booked 20 containers to ship to Mumbai, each comprising 12.5 tonnes of onions of Iranian origin, bought from the Dubai free port.

The onion's landed cost would be around Rs 14 per kg but the retail price will be pegged at around Rs 18 thanks to overheads and local taxes. Though NAFED will clear the consignment, it is yet to be decided whether the onions will be distributed/sold by NAFED's outlet at Vashi in New Bombay, or whether the containers will be handed over to the Food and Civil Supplies department of the state government.

The import is primarily meant to ease the current shortage in Mumbai, which has pushed prices in the retail market to an all-time high of Rs 25-30 per kg. However, it is more a psychologicaltactic to prevent consumers from panicking than a market solution with the kharif crop expected next month. Iranian onions have a short shelf-life and have a unique taste. NAFED plans to import around 10,000 to 15,000 tonnes before the kharif crop arrives.

The current dry spell after last week's torrential downpour has also stemmed the damage, which at present is around 10 to 15 per cent of the total production.

Meanwhile, onion prices continue to remain high at the Lasalgaon market, where the average price was Rs 2,170 per quintal and the maximum price Rs 2,275 per quintal today. The consignments, which range from 700 to 1,000 tractor trailorloads, each comprising 30 quintals daily, have dropped to a paltry 100 tractors.