Will Onion Reach Rs 50/Kg Again?
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Will onion reach Rs 50/kg again?

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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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