Agriculture Minister Shivraj Singh Chouhan said that onion prices are on the rise because the Central government has lifted the export ban on the kitchen staple in favour of the farmers.
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 per the government, the increase in prices of onion was on account of a shortfall in production in 2023-24 by about 20 per cent each in Kharif, late Kharif and Rabi, over the previous year due to less rains in major producing areas.
Post Navratri, surprisingly the prices of onion leaped and reached closer to Rs 100 per kg mark. In Delhi, onion was sold at Rs 80 per kg on Saturday. The price hike is a big concern for the government as election season is underway and it may affect the mood of people.
The farmers and the traders were disagree with the Centre's decision to impose 40 per cent export duty on onions amid a rise in its prices.
Onion, a politically-sensitive commodity, remained costliest in the retail markets of Bengaluru at Rs 100 per kg on Monday despite Karnataka being the third-largest producer of the kitchen staple in the country, according to government data.
The sharp price hike of onions started a meme fest on social media. While many memes were about how rich the Jain community will be since they don't consume onions, many others felt that Onions are the diamond in the vegetable world.
Experts and traders are of the view that heavy rainfall in south and western regions has led to supply disruption and impacted the arrival of the kharif crop which will begin in full swing in the coming weeks.
Onion prices are at an all-time high in most parts of India. In fact, the price of onions in many places has crossed Rs 100 per kg due to shortage.
AbhiBus decided to make this interesting offer, as the onion prices in some parts of the country crossed Rs 200 a kg and social media went in overdrive with memes and jokes on surging rates. More than 54 per cent opted for onions as their prize ever since the offer was made on December 10. The Goa option received 46 per cent response.
Onion prices have increased by 400 per cent after March as the average retail price of onion on December 3, 2019 was recorded to be Rs 81.9 per kg as compared to Rs 15.87 per kg in March 2019, said Minister of Consumer Affairs, Food and Public Distribution Ram Vilas Paswan on Tuesday in Lok Sabha.
Every family with ration card was given 1 kg onion at Rs 59. In the local markets, the vegetable is being sold for Rs 130-140 a kg, which is a seven-time increase in four months.
This is happening because of short supply," claimed vegetable vendor Rashid Qureshi in Bittan Market on Sunday. Vendor Hemant Advani said, "Seeing the short supply in the market, there would not be a drop in prices for at least another fortnight."
The wholesale dealers have been selling the onion for Rs 15,000 per 100 kg and the lowest at Rs 6,000 in Hyderabad.
After onions, the prices of edible oils have started surging as the bio-fuel programmes in Malaysia and Indonesia have increased the consumption of palm oil in those countries leading to a spike in its price.
While the onion price in open market was around Rs 90 a kilogram on Tuesday, it registered an overnight jump by Rs 30 in Bhubaneswar and Cuttack.
The Minister also told MPs the government has also decided to import to procure from the open market of countries with a surplus and from onion-growing regions. She further added steps are being taken for distribution of the onion through open mandis auction .
The stock holding limit was imposed in September. At present, retailers can stock onion only up to 100 quintals and wholesale traders are allowed to keep up to 500 quintals. Food and Consumer Affairs Minister Ram Vilas Paswan on Wednesday had asserted that the government was making maximum efforts to control prices.
"Many customers demand raw onion slices with the main dish. But we have put up a board at our hotel to inform the customers that a plate of raw onion would cost Rs 15 extra. We have taken this decision as we cannot afford to serve it free of cost," Prakash Shetty, who runs Bharat Lunch Home in Sion- Koliwada area, said on Thursday.
Onion prices are expected to come down in the coming days, especially after Diwali, as the fresh stock has started to arrive from Madhya Pradesh and Rajasthan.
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