Onion closer to Rs 150/kg

Onion prices in many parts of the country inching closer to Rs 150 per kilogram. Already, in households’ onions are used sparingly, and hotels have started charging extra money for its provision. Onions are also being imported, however, experts believe that importing in times of supply shortage is a short term solution.

Kolkata/Nasik: Onion prices in many parts of the country inching closer to Rs 150 per kilogram. As the wholesale prices in Nasik, a major producing region in the country, touch Rs 13,000 per quintal i.e. Rs 130 per kilogram in the last couple of days, traders and commoners fear that it would soon reflect at retail counters.

Already, in households’ onions are used sparingly, and hotels started charging extra money for its provision.

And, alarmingly, we are coming across news of onion thefts from farms.

Experts believe that importing in times of supply shortage is a short term solution.

Why the prices are going up?
Major producing regions like Maharashtra, Madhya Pradesh, Gujarat, Telangana witnessed heavy rainfall this monsoon season.

For instance, ccompared to normal rainfall, Maharashtra witnessed one and a half times more rainfall, Gujarat two times, Madhya Pradesh, Gujrat 70 percent and Telangana recorded 65 percent more rainfall.

High rainfall caused extensive damage to onion crops. The summer harvest that reach markets in the first week of October is still lying in farmlands.

The mismatch between the supply and demand shoot up the prices.

Role of Middlemen
Experts say that more than the climate-related facts, it is the middlemen to blame.

Dr Alli P, Senior Assistant Professor at VIT Vellore said, "our research that tracked the entire onion supply chain in the country concluded that the prices of onion have been fluctuating from 1998 onwards, not just due to the demand-supply constraints, but due to the dominance of middlemen."

She further said the arrival of onions in the markets has nothing to do with the price rise. While the farmers, who are the main producers, get only Rs 5-10 per kg, profits go into the pockets of retailers and wholesalers.

Dependence on imports
As per the source privy to the matter said tenders for importing 1.1 lakh tonnes from countries like Afghanistan, Turkey and Egypt were floated.

However, experts believe that importing in times of supply shortage is a short term solution.

Dr Parashram Patil, expert on agri business, echoed the same message. “To avoid similar situations in future the government should focus on post harvesting aspects of our agriculture. Expanding warehousing facilities in hinterlands would address the problem to a large extent”, said Patil.