New Delhi: After retail prices of onions shot up across the country, the Centre has stepped in to say that prices of the bulb will be checked. Onions are selling between Rs 70-80 per kilogram in most parts of the country. In Delhi, the rate has soared to Rs 80 a kilogram, while in Mumbai, prices hover at around Rs 70 a kilogram.
Agriculture minister Narendra Tomar attempted to allay fears, saying that prices will be checked. “Onion situation will improve in the next few days. Cooperative Nafed is releasing stock from the central buffer at a lower price. We have enough stock of onions,” he said.
The rise in prices is partly due to a lean period in supply prior to the harvest, which will take place in October. It is also partly due to a dip in supply caused by the drought in Maharashtra and heavy rainfall over the past couple of weeks in Karnataka.
Last year, the total supply in August was 59 lakh quintals across the country and it is marginally lower this year at 55 lakh quintals. While for the month of September, the total supply this year is 33 lakh quintals, compared to 60 lakh quintals last year. It is to be noted that the data for September 2019 does not span the entire month.
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The price of onions across the country has increased steadily for the past month and a half. In mandis such as Lasalgaon in Maharashtra, which is among the biggest for onions, the price has now touched Rs 4,000 a quintal.
The average wholesale price for September 2019 has shot up to Rs 2,578 per quintal, compared to Rs 1,040 per quintal last year for the same month. The average wholesale price across the country was Rs 1,720 per quintal in August 2019, compared to Rs 1,181 for the same month last year.
The government recently announced that it will import 2,000 metric tonnes from countries other than Pakistan. The imports are expected to arrive only by the end of November, and the quantity is too small to make a significant difference in the prices.
The price rise at this point is temporary and is likely to subside when the new harvest starts entering the market next month. Also as Navratri begins, the demand for onions among the pious is likely to fall, further easing the situation.