After tomato, onion follows suit; 60%rate hike in week

Karam Prakash

New Delhi, August 18

After tomatoes, the price of another staple vegetable — onion — is on a steep rise in the country. Within a week, retail prices have already increased by nearly 60 per cent.

From Rs 25-30 per kg last week, onions now are being sold at Rs 40-45 per kg in major cities. In the big retail outlets, the price has already reached Rs 50 per kg. In Delhi, vegetable vendors are selling onions at Rs 45 per kg.

As per the price monitoring division of the Department of Consumer Affairs, the wholesale price of onions in North India has increased by 1,000 per quintal this month.

From Rs 1,651 per quintal on August 2 to Rs 2,400 per quintal on August 14, the wholesale price of onions in Nashik (Maharashtra) jumped by 45 per cent. It is Nashik that has the country’s largest wholesale onion market.

Experts believe that the current rise in onion prices is due to supply constraints. Unseasonal rain in April — across the key producing states of Maharashtra, Madhya Pradesh and Rajasthan — affected the shelf life of stored rabi harvests.

Experts said that onion prices are likely to rise further in September. “The price of onions is likely touch three-digit figure next month. Relief is expected when the kharif crop will be harvested in October-November,” said an expert.

Following a rise in the retail prices of onions, the Union Government last Friday had announced that it would intervene to control the prices. The Department of Consumer Affairs had decided to release stocks from the onion buffer.