Will onion reach Rs 50/kg again?
Onion prices are on fire all over
the country owing to concerns of an expected decline in production and delayed
arrivals. The price rise has been sharper in the past one week following heavy
rains in the producing centres of Maharashtra and floods in the south.
Prices have escalated three-fold in
the Lasangaon APMC (Agriculture Produce Market Committee) market in the Nasik
district, which produces a third of the country's onion crop. PMC sources said
prices will remain high for the next fortnight at least - an issue that has
been made an election plank in the state by the Shiv Sena. Maharashtra goes to
the polls next week.
In Delhi, the APMC price rose to Rs
2,000 a quintal compared to Rs 880 a week back.
The latest situation marks a
significant change from just a few days ago when onion prices fell to Rs 650
per quintal due to poor demand. Stock that had been damaged during the harvest
could not fetch more than Rs 400 a quintal.
However, R P Gupta, director of the
National Horticultural Research and Development Foundation, said the impact
would not be serious. "About 60 per cent of the kharif crop in both these
states has been harvested. In the remaining crop, an impact of 15 to 20 per
cent is estimated either due to rains or floods. The overall impact on domestic
onion output may not be much," he said.
Gupta said only a few districts
(such as Kurnool, Mahbubnagar and Cuddapah in Andhra Pradesh and Dharwad and
Hubli in Karnataka) have been affected. The Kharif season accounts for around
40 per cent of domestic onion output, while the rest is produced in the rabi
season.
A leading onion exporter, however,
thinks the pressure on demand will continue for some more time till Maharashtra
arrivals begin, but winter prices will remain high.
The common man's woes are going to
increase with prices of sugar, potato and pulses also rising sharply on the
back of lower production over the last few months. Potato prices have also
risen 15 to 20 per cent in the last one month on lower output.
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