The rise in onion prices is a temporary phenomenon and the situation will improve with the arrival of new crop next month, the Government said on Monday.
Agriculture Secretary Shobhana K Pattanayak said that there is sufficient supply of onion to meet the domestic demand till next month and the Government is closely monitoring wholesale and retail prices of the bulb. Retail prices of onion ruled in the range of Rs 32-40/kg in metros, as per official data. But the fact is that the supply of onion in all mandis have been reduced due to short supply. Due to excess rainfall in Rajasthan and Gujarat has reduced while supply from southern Karnataka has been affected to due to consecutive droughts. Supplies of new crop from Kurnool region in Andhra are also down drastically due to weak rain.
“In some wholesale markets, prices are in the range of Rs 20-22/kg. We are closely watching the prices. I don't think this (price rise) will remain for long. It is a temporary phenomena. Prices will see correction,” Pattanayak told a new agency.
He further said that early kharif onion, which should have come from Karnataka at this time, has not hit mandis yet as the crop been affected due to poor rains. However, the secretary expressed confidence that the supply will improve from next month when the crop from states like Andhra Pradesh will start arriving at the mandis. Already, early sown kharif onion is being harvested in some states, specially Andhra Pradesh. This will improve supplies and cool down prices in coming days. The availability of some local onion in Rajasthan will also improve the supply, he said.
Early kharif onion from Kurnool in Andhra Pradesh is being sold in Odisha and West Bengal at present in view of spike in rates in Nasik and lasalgoan in Maharasthra, the country's leading producer of the bulb crop, he added. The secretary also said that fall in kharif output is unlikely except in some states like Karnataka where production has been hit due to poor rains. Otherwise, the onion crop in most of the states is in good condition, he said.
About 30-40 per cent of the country's total production comes from the kharif season and the rest from the rabi season.