A Tribune survey
Consumers paid 8 times more for onions
by Prabhjot Singh
Tribune News Service

CHANDIGARH, Oct 28 — Consumers of onions in the country paid more than Rs 4,000 crore extra in the past six months as compared to the same period last year even after cutting their consumption of this commodity to nearly half, says Mr Nirmal Singh Sandhu, a trained hotelier.

Mr Sandhu says that price of onion remained almost constant at Rs 5 a kg last year and at the beginning of the current year. Of a total consumption of 40 lakh tonnes annually, the monthly intake of onion comes to about 3.3 lakh tonnes. Against the previous year's price of Rs 5 a kilo, the average price in the past six months, says Mr Sandhu, comes to Rs 40 a kg. If calculated at last year's rates, one lakh tonnes cost Rs 50 crore. But this year, they cost eight times more, which comes to a whopping Rs 400 crore. The difference for a lakh tonne of onions, calculates Mr Sandhu, comes to Rs 350 crore. Taking the average consumption to half because of high prices, consumers of onion in the country shelled out nearly Rs 4,000 crore more this year, though their intake of the commodity was 50 per cent.

Where has this money gone? he asks. This is the money, he says, which has been pocketed by "onion cartel", middlemen, commission agents, who basically operate from states ruled by the BJP. "This is, perhaps, the biggest scam to have rocked not only the country in general but an average consumer, a poor man, in particular. The people have right to know where this huge amount of money has gone," says Mr Sandhu.

The economics of onion scam apart, an average consumer continues to be hit hard as the roadside dhabas, small restaurants have not only deleted "onions" from their "salad" and "pudina ki chutney list", but have also effected a 15 per cent to 30 per cent increase in prices.

A Sector 7-C tandoor owner says because of the unprecedented increase in prices of vegetables, pulses and edible oils, he has raised the price of a plate of vegetables from Rs 15 to Rs 20 while the tandoori chapati is priced at Rs 2 a piece as against Rs 1.50 a few months ago. A plate of fried dal minus onions could now be had for Rs 20 as against Rs 12 to Rs 15 earlier.

The situation is no better in certain restaurants in the city. They have hiked the kitchen rates by 15 to 30 per cent. The reasons given by them are the rising prices of all inputs, including edible oils.

Though there is not much of a change in the prices of chicken, mutton, fish, milk products and mushrooms, the dhaba and restaurant owners maintain that because of costlier cooking medium and rising prices of spices, they are being forced to hike the prices of these items as well.

Now the power tariff is to go up from November 11, they say.

Roadside tandoorwallahs, too, are reeling under the price rise. A simple chapati cannot be had for less than Rs 1.50, which was until a few months ago available for Re 1. Same is the case with a simple plate of dal, which is now Rs 12 against Rs 8 earlier.

"I have been eating at a restaurant in Sector 20 for the past several years but had never to pay so much for a simple meal as I have to do now," says a government employee. He says his food bill has gone up by 30 per cent though his menu has almost remained unchanged. "The only changes are that I do not get onions in free salad with food. The restaurant does not give pudina ki chutney any more because it needs onions as an ingredient," he adds.

Those restaurants selling Chinese preparations, too, have raised the rates though most of the preparations are without onions. The reason given is the rising prices of other ingredients, including oils, vegetables and even rice.

The bigger hotels and those run by CITCO, however, have not increased the prices for they have rate contracts for supply of edible oils, vegetables and fruit. "The suppliers are facing the pinch", a spokesman of CITCO said, claiming that they "are getting onions, vegetables, fruit and edible oils at rates decided at the beginning of the year."