With less supply in the market, onion prices in many major cities have increased significantly over the past few days, leaving customers in financial distress. The price of onions has gone up from Rs 40-60 per kg to Rs 70-80 per kg at the wholesale markets, reported news agency ANI. In some other cities, the prices of onions have doubled, rising by nearly Rs in just a few days.
It should be noted that the skyrocketing prices of onions are significantly impacting households and consumer habits, leading to volatility in the wholesale markets. In big cities like Delhi and Mumbai, the prices of onions per kg reached a five-year high in November.
As the rising onion prices have left customers teary eyes, the sellers are struggling to keep up with the rising rates as sales reduce.
At this time, the government officials said the onion prices are expected to further cool down in the coming days as the arrival of fresh kharif crop has begun.
A senior consumer affairs ministry official told PTI that the average all-India retail price of onion is ruling at Rs 54 per kg and the prices have declined in the past one month after the government's subsidised sale of onion in key consuming centers, the official said.
The government is disposing of the buffer stock onion in the retail market at a subsidised rate of Rs 35 per kg in Delhi-NCR and other cities to provide relief to consumers from high prices.
The government has a buffer stock of 4.5 lakh tonne of onion, of which 1.
5 lakh tonne has been disposed till date. According to the ministry official, the buffer stock onion is being transported to key consuming centres through railways for the first time and is helping boost the supplies.
"We will continue with the bulk rail transportation of buffer onion till we exhaust with the stock and prices stabalise," the official said.
About 4,850 tonne of onion has been supplied through rail rakes in the last few weeks to Delhi, Chennai, and Guhawati. A maximum of 3,170 tonne onion was transported to the price-sensitive Delhi market.
"Another rake of Rs 730 tonne by cooperative Nafed is expected to reach Delhi tomorrow," the official said noting this should further boost the availability and ease prices.
