Supplies down from 11,480 quintals to 6,000 quintals; arrivals from onion-producing States have declined in the last 8-10 days

Onion prices have soared to Rs. 60 per kg in the retail market of the national Capital due to a dwindling supply in the wholesale market.

Politically sensitive item

Local vendors are selling onion, a politically sensitive item, at Rs. 55-60 per kg in Delhi, while rates are lower at organised retails.

At Mother Dairy’s 350 Safal stores in the National Capital Region, onion is being sold at Rs. 45 per kg. At MORE retail outlets, the edible bulb is available at Rs. 50 per kg.

Onion supplies have substantially come down in Delhi to 6,000 quintal from 11,480 quintals ten days ago, according to the data maintained by the National Horticultural Research and Development Foundation (NHRDF).

“Wholesale price of onion has touched Rs. 40-45 per kg. Arrival of onion from producing States has declined in the last 8-10 days,” Azadpur Mandi’s Onion Merchant Traders Association president Surendra Budhiraj said.

The new crop is expected from Tamil Nadu, Andhra Pradesh and Karnataka in September-October, he added.

Government intervention

Concerned over the rising prices, the Delhi Government has already started selling onion at reasonable rates at 350 outlets across the city to provide relief to citizens.

Meanwhile, rates at Lasalgoan, Asia’s biggest wholesale market for onion, have risen to Rs. 31.50 per kg from Rs. 24 per kg on July 31 as supplies have gone down.

Onion prices in Punjab, Haryana and Chandigarh have also shot up to Rs. 50-55 per kg across retail markets, courtesy the short supply. Wholesale onion price in Lasalgaon had reached this level during December 2010-January 2011.

Retail prices had then skyrocketed to about Rs. 100 per kg across the country, forcing the government to curb exports.


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