India’s onion prices surge
The Centre is mulling imposing stock limits on onion traders as the retail prices of the key kitchen staple have shot up to Rs. 70-80 per kg in the capital New Delhi and other parts of India owing to supply disruption in the wake of excess monsoon rains in the major growing states, according to sources, reports PTI.
As per the data maintained by the consumer affairs ministry, retail onion prices rose to Rs. 57/kg in Delhi, Rs. 56/kg in Mumbai, Rs. 48/kg in Kolkata and Rs. 34/kg in Chennai last week. The prices were quoted at Rs. 60/kg in Gurgoan and Jammu during the same period.
However, trade data showed retail onion prices skyrocketing to Rs. 70-80 per kg towards the end of the last week from Rs. 50-60/kg in the previous week. Onion prices are on the rise despite several measures taken by the central government to boost supply.
"The government has taken several measures in the last few weeks to improve the domestic supply and check further increase in prices of onion. However, retail prices have suddenly shot up in the last 2-3 days because of supply disruption due to excess rains in the growing states," a source told PTI.
It is a short-term supply disruption and if the situation does not normalise in the next 2-3 days and prices rise, then the government may consider seriously imposing stock holding limits on onion traders, the source said.
According to the Met Department, main onion producing regions especially Maharasthra, Karnataka, Andhra Pradesh, Gujarat, eastern Rajasthan and western Madhya Pradesh have received excess monsoon rainfalls in the last two days. Right now, stored onions are sold in most parts of the country as fresh kharif (summer) crop will hit the market from November onwards, traders said.
