Onion prices are on the rise and may leave the consumers in tears in the coming days. Due to incessant rains and floods in onion producing states, the prices of the bulb have increased from Rs 20-25 to Rs 35-40 per kg in the retail market. According to onion traders, the wholesale prices have increased over the past 15 days in major markets such as Lasalgaon and Bangaluru.
Onion was sold at Rs 20-25 per kg till the first week of August, But it is now being sold at Rs 35-40 per kg in the retail market in Delhi. The sudden price rise has made homemakers sit up and take control of the house budget, as onion is an important ingredient for cooking and serving salads.
In a move to keep onion prices under control, the Centre on Wednesday warned of strict action against hoarding of onion amid supply disruption fears due to floods in parts of major growing states of Maharashtra and Karnataka. The ministry has also decided to cap the retail price of onion at Safal (a Mother Dairy outlet) at Rs 23.90 per kg (for Grade A variety). Safal will receive onions from the government buffer at the same rate.
Rajendra Sharma, who is the wholesale onion supplier of Agricultural Produce Marketing Committee Azadpur, said that the price is expected to increase further in the coming days. Sharma says farmers mainly in Maharashtra, who are aware of the current situation of floods impacting crops in Karnataka, are holding back their produce anticipating better prices in the days ahead. In Delhi, wholesale rate of onion is between Rs 10 and 22 per kg while in Lasalgaon, the wholesale rate is Rs 20 per kg.
In Lasalgaon, the largest market for onions, prices have moved up by over 40 per cent since early August. The increase is over 50 per cent over the past one month. APMC, Lasalgaon chairman Jaidutt Holkar told The Pioneer that this jump in prices will not last long as in the next 60 days a new crop will start arriving from the fields.
Maharashtra is the largest producer of onion, accounting for a third of the country’s produce, followed by Madhya Pradesh, Karnataka, Gujarat, Bihar and Andhra Pradesh. Karnataka has the second largest area under the bulb. Madhya Pradesh is the second largest producer of onions due to higher yields. Also the sowing was lower in Central Karnataka due to the delayed start of the monsoon and its slow progress.
All the concerned stakeholders, including representatives of Safal, NAFED (National Agricultural Cooperative Marketing Federation of India Ltd) and NCCF (National Cooperative Consumers’ Federation of India) were present in the meeting.