Peeling away the layers of onion price war

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A survey by the Delhi Government’s Food and Supplies Department has revealed a startling fact about onion prices in different areas of the Capital. Retailers are fleecing the consumers on the basis of their purses.

For example, onion is being sold at Rs 40 per kg while in Dallupura (East Delhi) it is just 15 per kg. In Mansarovar Garden (North-East Delhi) it is being sold at Rs 17 per kg while it is Rs 35 per kg in Nanakpura (South Delhi). Similarly, potatoes are being sold at Rs 20 per kg in Dallupura while it is Rs 35 per kg in Khan Market. The whole sale price of onion was found between Rs 10 and Rs 17.50 per kg on July 2. Meanwhile, the survey also revealed that on an average, retailers are selling vegetables at more than 50 per cent-80 per cent of wholesale prices.

This is the first time that the Delhi Government has conducted two such surveys to find out the rates of onion and potatoes in different areas of the Capital. The department is planning to rein in retailers in the areas where the rates have been significant changes in the rates. The survey also revealed that retailers are charging 50 per cent to 80 per cent from consumers depending on the location of the areas. In South Delhi’s posh colonies, they are selling onion and potatoes at higher prices.

According to the survey conducted on June 30, the onion is being sold at Rs 20-Rs 25 per kg in Okhla while potato at Rs 20-Rs 25 per kg. In a posh colony like IP Extension, both onion and potato is being sold at Rs 35 per kg. In lajpat Nagar, lodhi Colony, Vasant Kunj, onion is being sold by retailers at Rs 30 per kg while in Kalkaji, Govindpuri, Chirag Dilli, it is being sold at Rs 25 per kg. Officials say that they usually collect prices from different places to keep eyes on retailers and hoarders and also to assess why prices are going up. They pointed out that price control of these items would not be viable. Besides informing consumers about wholesale and retail prices, the Government may suggest some options to put these items at cheaper rate at several locations.

In a bid to rein in the rising prices of onion, the Delhi Government has written to Safal’s MD to bring down the prices of onion and stop making profit out of it. Currently, onion is being sold at Rs 29 per kg in Safal outlets. According to officials, 300 ration shop owners also agreed to sell onion and potatoes at government’s rate. In a related development, Chief Secretary SK Srivastava has called a high-level meeting with officials to identify the Government premises where onion and potatoes could be sold at cheaper rate. On the other hand, Assocham study also found that cabbage retail and wholesale price gap has increased from 69.4 per cent to 78.1 per cent, brinjal from 62.4 per cent to 66.7 per cent while cauliflower is 59 per cent higher than the wholesale price, among other vegetables.

Daily Pioneer
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