Despite various measures put in place by the Central Government, onion prices have once again breached the psychological mark of Rs 100 a kg in several parts of the country. The buffer stock of onion has already been liquidated. The situation is expected to remain the same till December end as onion supply in domestic markets yet to be improved. Two high-level committees — one headed by Union Home Minister Amit Shah and second by Cabinet Secretary Rajiv Gauba — have been set up to look into the skyrocketing onion prices.
Sources said that the Government is making an effort to import onion from Turkey, Egypt and Holland immediately to cool down the retail level spike. According to Food and Consumer Affairs minister Ramvilas Paswan the season for onion cultivation is mostly over across the world except for Egypt, Turkey and Holland. "Indian Missions in these countries are also trying to facilitate the movement of stock from these countries," he said. Officials said that the buffer stock of 56,000 tonnes of onion has already been liquidated. "There is a shortfall of 50 per cent in supply in the local markets due to shortage," sources added.
According to sources, the time period for stock holding limit has been extended until further December end and the stock holding limits will remain the same.
On Wednesday, onion was selling for anything between Rs 100 and Rs 70 a kg in the national Capital. In Coimbatore, onion was selling between Rs 120 and 150 a kg. Similarly, the retail prices of onions in Chennai breached the Rs 120 a kg mark. The wholesale prices of onions were between Rs 50 and Rs 60 a kg and the retail price Rs 80 a kg last week.
In Lasalgaon and Nashik mandis, the wholesale price of onion was crossed Rs 70 per kg. Onion prices witnessed a sharp jump since October, with rates in local markets across the country touching Rs 100 per kg. However, prices till last week were hovering between Rs 60 and Rs 70 per kg in several parts of the country.
In a move to control prices, the Government halted the export of onions, is importing (this will go on for a bit, not like all of it is in the country) and cracked down on those suspected of hoarding. The current rise in onion prices is a result of last year's drought and a delayed monsoon this year. The situation is compounded by excessive rainfall in onion-growing areas, which has delayed the harvest period by a week or so. About 90 percent of India's onion comes from the states of Karnataka, Maharashtra, Madhya Pradesh, Gujarat, Rajasthan, Uttar Pradesh, Bihar and West Bengal. Of this, Maharashra contributes to nearly one-third of the country's production of the vegetable.
The Ministry has written to Chief Secretaries of all States asking them to suitably reduce the stock limits further in their States as per the availability and prices. They have also been exhorted to strictly enforce these stock limits and send an action taken report on a weekly basis.