After ruling at Rs 20 to Rs 25 a kg last week, the price of onion has shot up. The retail price has now touched Rs 50 a kg in metros like Delhi, Mumbai and Chennai due to tight supplies.
According to Agriculture Produce Marketing Committee (APMC), the onion prices are expected to increase further across the country. The Agriculture and Consumer Affairs and Food Ministries are closely watching the price situation and alerted all states to keep a check on hoarding and profiteering.
To increase the availability of onions in the domestic market, the Centre has asked NAFED and Small Farmers' Agribusiness Consortium (SFAC) to procure 1000 tonnes each to keep the prices under control in retail markets. The shortfall has primarily been on account of adverse weather conditions, including unseasonal rains which have impacted both the standing and harvested crop at major producing centres.
According to former Azadpur Mandi (Asia's biggest vegetable market) chairman Rajendra Sharma, the wholesale rate of onion is between Rs 30 and Rs 40 a kg depending on the quality. In retail markets in Delhi, the onion is being sold between Rs 50 and Rs 60 a kg depending on the area. In posh colonies, the onion is being sold at Rs 60 a kg. In unauthorized colonies, the rate is hovering around Rs 50 a kg. Presently 50 to 60 trucks arrive in a day at Azadpur Mandi which caters Delhi, Ghaziabad, Gurgoan and Noida areas. Delhi needs 100 tonnes onion in a day.
In Chennai's Koyambedu market, the wholesale price of onion has increased from Rs 20 to Rs 40 a kg. In the retail market, the onion rate has touched Rs 60-70 a kg.
Officials said that the situation will continue till December first week when new crops of onion will arrive in the market.
The onion are generally stored from May to November for a period of four to six months.
"The prices are under pressure due to depleting old stock and expected less 2017-18 kharif output owing to lower sowing area in states like Karnataka and Maharashtra on account of inadequate rains. On the other hand, the Ministry of Agriculture estimates India's onion output will increase 3 per cent this year to 21.6 million tonnes despite floods and late season rainfall in some states, farmers' shifting to other remunerative crops and crop damage," said officials.