Onion Prices Double Despite Government Measures
Onion prices have doubled in several states despite the Centre releasing stocks from its reserve amid soaring festive season demand. The lack of monsoon has also caused the price rise. According to retailers, most vegetables have witnessed high demand ahead of Diwali, leading to a rise in prices.
Households, eateries, and street-food vendors are buying large quantities of vegetables ahead of Diwali. The government will continue to sell onions from its buffer stock in about 16 cities to stem the current inflationary spell, an official said, according to LiveMint.
In the national capital, onion prices have reached Rs. 80/kg from Rs. 30 two weeks ago, while cities such as Chandigarh, Kanpur, and Kolkata have seen the same price rise.
The spoiled kharif onion crop in Maharashtra and Karnataka, both of the largest suppliers in the country, due to the lack of monsoon, along with the already exhausted winter crop, has resulted in a high price.
Curbing exports has helped wholesale prices in Maharashtra, the largest producer, to mitigate the increase, the consumer affairs ministry, which monitors prices of 22 essential food items, said in a statement.
On October 28, the government curbed onion exports by fixing a minimum export price (MEP) at $800. This measure had an immediate impact on prices in Maharashtra markets, with a record decline of 5% to 9% from the highest price recorded last week, according to government officials.
According to data cited by the consumer affairs ministry, the weighted average price of onion in Maharashtra across all markets has dipped 4.5%, and retail prices may gradually follow the trend.
However, according to supply-chain intermediaries, prices may further go up as supplies have diminished due to a delay in harvesting.
“Most vegetables and fruits, such as green leafy items, pumpkins, onions, and even bananas, have become quite expensive within a week,” LiveMint reported, quoting Alka Agarwal of Delhi-based Shobhit Traders Pvt Ltd.
