Pricy onions bring tears

Consumers standing in line at the Rythu Bazaars irrespective of the low quality commodity, reduced arrivals at the wholesale market, and consequent price escalation continue to mirror the onion crisis the city is facing along with the rest of the country

Consumers standing in line at the Rythu Bazaars irrespective of the low quality commodity, reduced arrivals at the wholesale market, and consequent price escalation continue to mirror the onion crisis the city is facing along with the rest of the country.

Retailers were selling the commodity at Rs.50 to Rs.55 per kg at the Mahabub Mansion Market Yard at Malakpet which receives onions from across the State and outside. Traders are keeping their fingers crossed for improved arrivals from States such as Maharashtra and Karnataka -- major onion baskets of the country.

On Thursday, arrivals at Malakpet stood at a little over 12,000 bags, each bag containing about 50 kg of onions. This is nearly 40 per cent less than the arrivals last year on the same day, recorded at 16,632 bags.

However, the situation was much better than Wednesday that had seen only 8,540 bags being unloaded in the market as against the 19,000 bags on the same day last year.

“We have received only nine truckloads totalling to 1,274 bags from Maharashtra and Karnataka, and about 4,729 bags from Kurnool district alone, on Thursday. Once the arrivals improve from outside, we can hope for the prices to come down,” says a market official.

Falling rupee

The general assumption is that onion exports from Maharashtra, encouraged by the falling rupee, has led to the crisis. However, the fact also remains that the usual imports from countries such as Pakistan, Iran, China and Egypt have also failed, let alone the crop being delayed from domestic farms, experts say.

“The first crop of the year which ought to arrive during July-August has not arrived so far. Further, we have not received our usual quota of imports either due to transport related problems,” Sarampally Malla Reddy from All India Kisan Sabha noted.

Reduction in sown area

Another notable factor is the drastic reduction in the extent of sown area for onions last year, owing to near drought conditions. Mr. Reddy notes that only 92,000 acres in the State was sown with onion during 2012-13, as against the 1.4 lakh acres the previous year. Kurnool and Mahabubnagar, the leading producers of onions, experienced prolonged drought conditions last year, due to which many acres remained unsown.

Mr. Reddy also blames lack of control over exports, and hoarding by the MNCs in retail as more reasons for the present predicament.