| Date: |
24-08-2015 |
| Subject: |
Onion prices skyrocketing, wholesale cost creates new record of Rs 57 per kg |
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PUNE: Onion prices hit a record high over the weekend in the nation's biggest wholesale market for the commodity, suggesting the possibility of a further increase in retail prices as well and worsening the problem at hand for authorities.
The average price at Lasalgaon in Maharashtra's Nashik district rose to Rs 57 a kg on Saturday, breaking the previous record of Rs 55 hit in September 2013. Since the beginning of August, the price has risen more than 80% as supplies fell. Farmers and traders don't see any respite at least until the end of September — when early kharif crop will start arriving — unless the government resorts to imports in a big way.
Consumers pay between Rs 50 and Rs 80 for a kilo of onion. When the wholesale price hit the previous record in 2013, the retail price had reached as high as Rs 100 a kg and remained uncomfortably high from August till October. Since onions are essential to most Indian recipes, any spike in the little bulb's price causes resentment among consumers and headache to the government.
The government is trying to rein in prices by increasing supplies. State-run trading agency MMTC has floated a tender for the import of 10,000 tonnes of onions from countries such as Pakistan, China and Afghanistan. Many traders in the Delhi market have already stared sourcing onions of Afghan origin via Pakistan. Those in Mumbai are expected to receive consignments from Egypt next week.
On Saturday, when the average wholesale price at Lasalgaon touched Rs 57 a kg, the best quality onion quoted as high as Rs 62. It took less than a month for the Lasalgaon prices to move up from Rs 25 (on July 25) to the record high. In 2013, it had taken more than a month and half.
Though increasing onion prices are pinching consumer pockets, not many farmers are able to take the benefit. Due to deficient rains last year and hailstorm in summer season, a large number of farmers had lost their crop or could not keep it for long due to quality issues. Many also expected the government to take steps to keep prices under control.
"Many farmers from our village have already sold their produce thinking that the government will not let prices rise this year too. I was lucky to have my stocks still with me, which happened accidentally as my deal with a trader had been cancelled," said Anand Ostwal from Satana in Nashik district.
Daily arrivals at Lasalgaon have reduced to about a third of the quantity at this time last year. Traders claim that prices cannot come down at least until September-end unless the government imports are really big.
"Deficient rains in Maharashtra have strengthened the anticipation of traders (for higher prices). The kharif crop is likely to be delayed," said a central government official, who did not want to be identified. "The concerned department of Maharashtra government has not yet shared the onion sowing data with us," this official said.
Source : economictimes.indiatimes.com
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