Onion prices shoots to Rs. 80 per kg in Delhi

by news
March 25, 2015

New Delhi(NDTV): The Onion prices in the nation’s capital have shot up to Rs. 75-80 per kg in the retail market. The prices are about 30 per cent higher from the Rs. 60 per kg level seen in Delhi last week.

Traders attributed the increase in onion prices to limited supplies from producing states especially Maharashtra, Gujarat, Karnataka and Andhra Pradesh.

Onion prices in the national capital have been seesawing between Rs. 60 per kg and Rs. 80 per kg in the last two months despite government measures like curbing exports and allowing imports.

“Prices are high because supplies have slowed down due to unseasonal rains at the time of harvesting. Rains have damaged the crop in key growing states,” said Rajendra Sharma, chairman of Agricultural Produce Marketing Committee (APMC) at Azadpur vegetable market.

Onion prices in the retail markets would be high as the wholesale rates are ruling at Rs. 25-60 per kg at Azadpur, he said.

Stating that the high price situation in onions will continue for some more days, Mr Sharma observed, “Prices are likely to cool down by the weekend with more quantity of onions expected to arrive from Rajasthan.”

Delhi’s onion consumption is about 800 tonnes per day.

Not only Delhi, consumers in other parts of the country are also affected by the price hike. In major cities, onions are sold at over Rs. 60 per kg in retail markets.

Nashik-based onion expert Satish Bhonde said the kharif crop that was ready for harvesting in Maharashtra, the largest onion growing state, has got damaged and hence supplies could not be transported from here to consuming states.

Currently, onion supplies are less than 50 per cent of the country’s monthly estimated total demand of 9-10 lakh tonne.

Due to exports curbs, onion shipments fell by 28.48 per cent to to 7,16,246 tonne in the first six months of the current fiscal year. India produced 16.3 million tonnes of onion in 2012-13 crop year