Onion prices shoot up to year's highest of Rs 80 per kilo
August 20, 2015 15:04
Onion price at Lasalgoan in Maharashtra -- Asia's biggest wholesale market for onions -- on Monday rose to Rs 80 per kg, the highest so far this year, due to sluggish supply of the crop. The current wholesale price is higher than the average rate of Rs 36.94 per kg and Rs 16.10 per kg that prevailed in August 2013 and 2014, respectively.
Prices of onion in the retail market shot up to nearly Rs 80 in few areas of Delhi, despite the city governments attempt to control its prices by selling it at Rs 30 from its Fair Price Shops.
The government on Tuesday asked state-run trading company MMTC to import 10,000 tonnes of onion. It has also directed cooperative Nafed to cancel its tender. NAFED had re-invited bids for import of 10,000 tonnes of onions from countries like Pakistan, China and Egypt after it failed to attract any supplier in the previous tender. The bids required to be submitted before August 27.
Onion prices are on rise due to mismatch in supply and demand. A similar trend prevails in other parts of the country.
Traders said prices are under pressure due to production fall and sluggish supply of stored onions meant for meeting the demand during the lean period of July-September. Anticipating further rise in prices, farmers and traders are also withholding stocks in Maharashtra, the country's top onion producing state and are releasing limited quantities for sale in the wholesale market, they added.
As of now, less than 30 lakh tonnes of stored onion is left in the domestic market to cater the demand till September.
The total onion production is estimated to be at 189 lakh tonnes in 2014-15 crop year (July-June), slightly lower than 194 lakh tonnes in the year-ago period.
Maharashtra, Karnataka and Madhya Pradesh are the top three onion producing states in the country.
Onion prices were regarded as the decisive factor in the 1998 state elections in Delhi and Rajasthan, and were responsible for bringing down the central government in 1980. India is the second largest onion producer in the world, after China.
Prices of onion in the retail market shot up to nearly Rs 80 in few areas of Delhi, despite the city governments attempt to control its prices by selling it at Rs 30 from its Fair Price Shops.
The government on Tuesday asked state-run trading company MMTC to import 10,000 tonnes of onion. It has also directed cooperative Nafed to cancel its tender. NAFED had re-invited bids for import of 10,000 tonnes of onions from countries like Pakistan, China and Egypt after it failed to attract any supplier in the previous tender. The bids required to be submitted before August 27.
Onion prices are on rise due to mismatch in supply and demand. A similar trend prevails in other parts of the country.
Traders said prices are under pressure due to production fall and sluggish supply of stored onions meant for meeting the demand during the lean period of July-September. Anticipating further rise in prices, farmers and traders are also withholding stocks in Maharashtra, the country's top onion producing state and are releasing limited quantities for sale in the wholesale market, they added.
As of now, less than 30 lakh tonnes of stored onion is left in the domestic market to cater the demand till September.
The total onion production is estimated to be at 189 lakh tonnes in 2014-15 crop year (July-June), slightly lower than 194 lakh tonnes in the year-ago period.
Maharashtra, Karnataka and Madhya Pradesh are the top three onion producing states in the country.
Onion prices were regarded as the decisive factor in the 1998 state elections in Delhi and Rajasthan, and were responsible for bringing down the central government in 1980. India is the second largest onion producer in the world, after China.
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