Onion prices in Delhi and the National Capital Region shot up touching `70 to 60 per kilogram as opposed to the price of staple vegetable that are being sold at `30 to 50 per kilogram. The price of onion is likely to touch `100 per kilogram by November first week. The price is projected to remain on the higher side till December.
Onion price making a sudden uptick after the end of Navaratri celebrations raised eyebrows of both consumers and vendors. According to Government data, the maximum price of onions has surged to around `70 per kilogram.
Mother Dairy, which has around 400 Safal retail stores in the Delhi-NCR, is selling loose onions at `67 per kg. E-commerce portal Bigbasket is selling at `67 per kg, while Otipy at `70 per kg. Local vendors are selling onions at Rs 80 per kg. Besides, most of the vegetables are being sold `60-80 a kg in the national capital.
Mother Dairy was selling onions at `54-56 per kg on Wednesday and now the rates have touched `67 per kg.
According to vendors at vegetable markets, the inflow of the onion is low resulting in high rates.
“On Saturday, the rates are ` 350 (per 5 kg). It was `300 on Friday. It was `200 before that. A week ago, rates were `200, `160 or `250 etc. The rates have gone up from the last two weeks. The rates have risen due to a shortage in supply,” Bharatpal, a vender of Azadpur mandi said.
Likewise, onion prices have spiked in other states including Karnataka and Maharashtra due to lack of supply.
The high prices of onion may impact the upcoming elections in the five states and this could be one of the election issues in these five states. To control the prices, the government has imposed a minimum export price (MEP) of USD 800 per tonne on onion exports till December 31 this year. "Exports on onion is free. MEP of USD 800 FOB (free on board) per tonne is imposed till December 31, 2023," the Directorate General of Foreign Trade said in a notification.
The Ministry of Consumer Affairs has also decided to step up the sale of buffer onion at a subsidised rate of `25 per kg in retail markets in order to provide relief to consumers.
According to the Department of Consumer Affairs data, on Saturday the all-India average retail price of onion is `45 per kg, but the maximum price is `80 per kg. In Delhi, the average price is ruling at `75 per kg.
"We have been offloading buffer onions since mid-August and we are stepping up the retail sale in order to check further rise in prices and provide relief to the consumers," Consumer Affairs Secretary Rohit Kumar Singh said on Friday. According to the ministry, onion is being offloaded from the buffer stock in both wholesale and retail markets in those states where there is a sharp rise in prices.
Since mid-August, about 1.7 lakh tonnes of buffer onion has been offloaded in 22 States at different locations.
In retail markets, buffer onion is being offloaded through two cooperative bodies NCCF and NAFED outlets and vehicles at a subsidised rate of `25 per kg. In Delhi too, buffer onion is being sold at this subsidised rate.
A senior Ministry official said the delay in kharif onion sowing due to weather reasons has resulted in less coverage and late arrival of the crop. The fresh kharif onion should have started arriving by now but it has not.
With stored rabi onion getting exhausted and delay in the arrival of the kharif onion, there is a tight supply situation, resulting in price increases in both wholesale and retail markets, the official added.
He also mentioned that the Government has doubled the buffer onion stock for the current year and this should improve domestic availability and check prices in the coming days.
For the 2023-24 fiscal year, the consumer affairs ministry through NCCF and NAFED has maintained a buffer onion stock of 5 lakh tonnes and plans to procure an additional 2 lakh tonnes of onion in the coming days.