Onion prices rising in India
Wholesale onion prices have been rising in parts of India for the last two weeks because of falling supplies from producing states, a traders' body said.
To cope with the situation, the Indian government discussed onion prices and its availability with all the stakeholders concerned in a meeting in New Delhi on October 19.
Onion prices are likely to go up to Rs 40-45 a kilogramme by Diwali next month as wholesale prices have already seen a 50 percent jump in the past few days at Lasalgaon, Asia's biggest wholesale onion market in Maharashtra.
Prices in Lasalgaon are considered to be the benchmark rate for onions for the rest of India. Traders said the availability of the Kharif variety of onion is likely to be lower due to drought-like conditions in the state.
The wholesale onion markets in Lasalgaon will remain closed for seven to eight days during Diwali break, which may also be responsible for the price spike.
An increase was also seen in retail onion markets where the prices of a kg of the kitchen staple were hovering between Rs 30 to Rs 40, depending on the quality and locality.
There has been Rs 7-10 per kg increase in the wholesale rates of onion in the last two weeks, said Rajendra Sharma, general secretary of the Onion and Potato Merchants Association (Azadpur wholesale market in Delhi).
The price gap between the old and new crop of onion has come down and the arrival of new Kharif crop is yet to begin in full swing as farmers have not started harvesting due to the festive break, he said.
Meanwhile at Lasalgaon, the prices soared to Rs 21-22 per kg on reports of a possible drop in the output of the Kharif variety crop because of a heat wave in the state.
The major onion-producing Indian states are Maharashtra, Gujarat, Orissa, Karnataka, Uttar Pradesh, Andhra Pradesh, Tamil Nadu, Bihar, Punjab and Rajasthan.
In the October 19 meeting chaired by Avinash K Srivastavam, secretary to the Department of Consumer Affairs, it was informed that sown area under the Kharif onion crop this year is higher than that of last year and its supply has commenced from Karnataka.
The arrival of the Kharif crop of onion is expected to increase significantly within a week, according to an official statement.
It was decided in the meeting that the supply of onion to Delhi from the buffer stock under the Price Stabilisation Fund should be increased by three times from the current level.
The onion prices and its availability will be constantly reviewed by the committee and appropriate measures will be taken as per requirement, according to the statement.
