Guntur: A worker winnows onions with a basket before transporting them to a market, at Undavali in Guntur district of Andhra Pradesh, Monday, Dec. 23, 2019. (PTI Photo)
The retail prices of onions remained higher at up to Rs. 150 per kg on Friday across several cities in India despite of efforts from government to import onions from countries like Turkey and Sri Lanka. In metros, the retail price of onion was ruling at Rs 120 /kg Kolkata, at Rs 102/kg in Delhi and Mumbai and at Rs 80/kg in Chennai, as per the data maintained by the consumer affairs ministry. In most cities, onion prices were ruling at Rs 100/kg. In Itanagar, the bulb crop was at Rs 150/kg.
"Imported onions have started arriving. About 1,160 tonne has reached India. Additional 10,560 tonne of shipments are expected to arrive in the next 3-4 days," a senior ministry official told PTI. But will that be enough to meet the rising demand of onions is a key question?
In mid-December, the Agricultural Produce Marketing Committee (APMC) official told news agency IANS that if the arrival of onions from Afghanistan doesn't increase, the onion prices in Delhi might touch Rs 200/kg.According to an official, the rise in wholesale onion price will affect the retail as well.
Countries from where India is importing onions?
Both red and yellow onions have been imported from Turkey, Egypt and Afghanistan. The shipments are landing at Mumbai port. India is currently importing onions from Afghanistan through Wagah border. Even though there is ample availability of the vegetables, limited handling capacity is curtailing the process.
State-owned MMTC, which is importing the key kitchen staple on behalf of the government, has contracted 49,500 tonnes of onion so far. Some shipments will arrive next month.
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Will Onion prices come down in the near future?
The prices of onions are expected to remain firm till mid-February due to countries like Turkey and Sri Lanka have curbed exports of the vegetable even though Indian imports have pushed up its prices in the market globally.
Why onion prices are so high now?
Onion prices have shot up sharply due to estimated 25 per cent fall in Kharif production of 2019-20 crop year (July-June) compared to the previous year because of late monsoon and eventual excess rains in the major producing states. Farmers stopped harvesting onions as the soil had lot of moisture post heavy rain in many onion producing sates.
The prices failed to cool down despite several government measures in the last few weeks. The government has already banned the export of onion, imposed stock limits on traders and is also supplying buffer stock at a cheaper rate.
Traders and experts are of the view that onion prices will continue to remain firm till January when late Kharif crop will start hitting the market. The country had last imported 1,987 tonnes of onion in 2015-16 when prices had shot up significantly.
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(With inputs from IANS and PTI)
