Onion prices likely to shoot up amid supply crunch

Kolkata: Onion prices likely to touch the three-digit mark as the vendors on Tuesday apprehended that the rate will normalise after the arrival of fresh crop in December.

On Tuesday, the price of one kg of onion shot up to Rs 90 in different marks across the city. Last week, the price of teary-eye vegetable was hovering between Rs 80 and Rs 70. Price of

other vegetables also remained high in the city markets.

"On Tuesday, we sold very good quality red onion at Rs 90. The average quality red onion was sold at Rs 80. Depending upon the quality, onion price varied between Rs 80 and Rs 90," said Sandip, onion vendor at Park Circus Market.

Another vegetable vendor at Bright Street said: "Today the price of one kg potato is Rs 36. Cauliflower Rs 40 per kg. Lady finger Rs 60 per kg. Tomorrow, we will sell potatoes at Rs 40 per kg."

Dealers have hinted that the price of onion is expected to rise till Diwali. The onion price is likely to touch Rs 100 in the coming weeks.

However, the rate will come down after the arrival of fresh kharif [summer] crop in the market in December.

The onion vendors pointed out that the sky rocketing price is due to disruption in the supply chain caused by the heavy rain in August in major onion producing regions.

Lasalgaon Mandi in Nashik, Asia's largest market yard for the bulb, supplies onions round the year to Bengal.

This apart, Bengal also imports onions from Andhra Pradesh, Uttar Pradesh and Madhya Pradesh.

"There are many reasons for the rise of onion price. The first is shortage of onion from Nashik due to damage of crop following rain. The other reason is forward trading," Uttam Mukherjee, onion merchant at Sealdah's Koley market.

Last year, when the price of onion touched Rs 100 the Bengal government started selling onions at a subsidised rate from 19 Sufal Bangla stalls in the city to provide a relief to the common people.