Onion prices rise in Delhi as rains and floods disrupt supply

New Delhi: Onion prices are on the rise and may leave consumers in tears in the days ahead. Due to incessant rains and floods, wholesale prices of onion have spiked over the past fortnight in major markets such as Lasalgaon and Bengaluru. Onion sold at Rs 20-25 per kg till the first week of August, is now being sold at Rs 35-40 per kg in the retail market in metro cities, across the country. The prices of onion have touched Rs 40-45 per kg in Delhi. The sudden price rise has made homemakers sit up and take control of the house budget, as onion is an important ingredient for cooking and serving salads.

In a move to keep onion prices under control, the Centre on Wednesday warned of strict action against hoarding of onion amid supply disruption fears due to floods in parts of major growing states of Maharashtra and Karnataka. The ministry has also decided to cap the retail price of onion at Safal (a Mother Dairy outlet) at Rs 23.90 per kg (for Grade A variety). To sell at cheaper rates, Safal will receive onions from the government buffer at the same rate.

Azadpur Agricultural Produce Marketing Committee wholesale supplier Rajendra Sharma said that the onion prices are expected to increase further in the coming days. He said that farmers mainly in Maharashtra, who are aware of the current situation of floods impacting crops in Karnataka, were holding back their produce anticipating better prices in the days ahead. In Delhi, wholesale rate of onion is between Rs 10 and 22 per kg, while in Lasalgaon, the wholesale rate is ` 2,000 per quintal.

Officials of the Department of Consumer Affairs (DoCA) who reviewed the price situation of onion during a high-level meeting said that onions for retailing by Safal is being made available at present from the government stock built under Price Stabilisation Fund (PSF).A senior officer said that the price situation would be monitored regularly by the department for appropriate intervention. He said that the government will also consider strict action against hoarding and profiteering activities and evaluate the need for imposing a minimum export price (MEP) on onion, if the situation so demands. All the concerned stakeholders, including representatives of Safal, NAFED (National Agricultural Cooperative Marketing Federation of India Ltd) and NCCF (National Cooperative Consumers’ Federation of India) were present in the meeting.

Safal, the largest retail chain of fresh fruits and vegetables in the national capital, has also been asked to double the quantity of its retailing operations for onions. NAFED and NCCF were also directed to retail onions at prices similar to that of Safal through their outlets and mobile vans.