Soaring onion prices is here to make you cry; Why it still costs a bomb?
New Delhi, Nov 05: The retail prices of onions, a staple in most Indian households, have firmly stayed above Rs 90 to Rs 100 per kg in many parts of the country over the past few days, due to unseasonal November rain in the state.
It had also created problems in neighbouring countries, especially Bangladesh, inviting a sharp jibe from PM Sheikh Hasina on how this ban, without any notice, affected her cooking and she had to instruct her cook to prepare all vegetables without Indian onions.
On September 29, the Centre had banned onion exports and capped stock limits for retailers and wholesale traders to prevent hoarding and control the soaring prices. A week later, the National Capital remains in tears' as prices of the second most consumed vegetable after potato are still burning a hole in people's pockets.
In Prayagraj, a vegetable vendor said, "The prices of onions have increased to Rs 70-80 per kg from Rs 40-50 per kg following recent rains that damaged the crop. Prices may come down after 10-15 days".
What is causing the surge
Onion prices have gradually increased in the last one month due to supply disruption from flood-hit onion-growing states like Maharashtra. Last week's rainfall has further affected the supply, due to which onion prices have surged up to Rs 70-80 per kg in the national capital and other parts of the country, as per trade sources.
But floods are not the only factor. Many traders in Delhi resorted to large-scale, pre-festival hoarding, a fact that the Delhi government acknowledged at a review meeting chaired by its Food and Civil Supplies Minister Imran Hussain on Friday. He ordered a crackdown on hoarding and black-marketing of onion and directed the department and other agencies to intensify field inspections.