Household budgets have been hit again as onion prices have soared following an acute shortage in supply. Onion prices are a whopping Rs 70 to 80 per kg in the national capital. In Kashmir too, onions are priced at Rs 80 per kg.
Onion prices in the retail market in Navi Mumbai stand at Rs 70 per kg. In Bhopal, onions cost Rs 65 per kg and in Patna Rs 50 per kg.
Food inflation accelerated to a three-year high of 18.18 per cent in August, government data released on Monday showed, driving the benchmark Wholesale Price Index up by a stronger-than-expected 6.1 per cent.
Food Minister KV Thomas has said in Parliament:
- We should not abruptly stop exports or start imports.
- During the lean season, the minimum export price of onion has raised.
- Prices will start coming down once the new crop comes - initiative had been taken to get onions from Rajasthan.
- During the lean season traders are making use of the opportunity to make money. AP, Gujarat, UP and Maharashtra have all conducted raids - implementing the essential commodities act is the states responsibility.
- The lean period is from July to September/October - when availability is less, prices go up.
In a separate note, the ministry has said that with barely 8-9 lakh tonnes of onion available in storage, barely sufficient to last two more months until the Kharif crop arrives , high prices are here to stay for some time.
The ministry's note has also hinted at supplies being squeezed in Maharashtra onion markets.
- Onion cultivation is .99 lakh hectares in 2012-13 compared to 1.08 in 2011-12 (decline by 8.33 per cent)
- Onion production was 166.55 lakh tonnes in 2012-13 compared to 175.11 lakh tonnes during 2011-12 (decline by 4.89 per cent)
- Onion storage was 2 lakh tonnes less when compared to last year.
- Onion export was 5.70 lakh metric tonnes more this year.
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