Retail onion prices on Friday remained higher at up to Rs 150 per kg even as the imported supplies have started arriving to boost the domestic availability and check prices.
According to the Department of Consumer Affairs, in metros, retail price of onion was ruling at Rs 120 a kg Kolkata, at Rs 102 a kg in Delhi and Mumbai and at Rs 80 a kg in Chennai.
In most cities, onion prices were ruling at Rs 100 a kg. In Itanagar, the onion was at Rs 150 a kg. The prices will remain high till January end next year. Only a substantial increase in domestic arrivals of the crop can help significantly ease onion prices in the local markets where average wholesale prices are still ruling at Rs 60-70 a kg, traders said.
Sources in the department said that imported onions have started arriving. "About 1,160 tonne has reached India. Additional 10,560 tonne of shipments are expected to arrive in the next 3-4 days. The imported onion is being sold at Rs 65-80 a kg across the country. Both red and yellow onions have been imported from Turkey, Egypt and Afghanistan. While Turkey has banned onion exports due to rising prices.
State-owned MMTC, which is importing the key kitchen staple on behalf of the Government, has contracted 49,500 tonne of onion so far. Some shipments will arrive next month.
Onion prices have shot up sharply due to estimated 25 per cent fall in kharif production of 2019-20 crop year (July-June) compared to the previous year because of late monsoon and eventual excess rains in the major producing States.
The prices have failed to cool down despite several Government measures in the last few weeks. The Government has already banned export of onion, imposed stock limits on traders and is also supplying buffer stock at a cheaper rate. Traders and experts are of the view that onion prices will continue to remain firm till January when late kharif crop will start hitting the market.
The country had last imported 1,987 tonne of onion in 2015-16 when prices had shot up significantly.