Millennium Post

Spiralling onion prices leave consumers ‘teary-eyed’

Spiralling onion prices leave consumers ‘teary-eyed’
Delhi residents have been hit hard by a sharp increase in the price of onion. The rate has shot up to more than 30 per cent in the wholesale and retail markets with the production decreasing due to improper rain which is causing a drop in supply from the other states as well. Traders have predicted more increase in the price level in the upcoming days, fearing shortage of stock in wholesale market. They claimed that the soaring trend will exist till Diwali with new crops likely to hit the markets by October end. Meanwhile, prices of other vegetables are also on the constant rise due to the aforementioned reason.

The increase in the price can be blamed on poor supply. In the first week of July, onion was available at Rs 20-25 per kilogram in the retail market and at Rs 15-20 per kilogram in the wholesale market.

However, the local retailers as well as Safal and other outlets are reportedly selling onion around Rs 35-40 per kg, which is almost double the price of what was being sold a fortnight ago. The wholesale rate of onion has crossed Rs 30 per kg mark and is going up by the day. “It's been almost two-weeks since the supply has gown down and the trend will continue till the fresh crops arrives from Alwar in Rajsthan,” said Mahender Singh, an onion trader from Azadpur mandi.

Traders of various mandis informed that a sudden fall in the supply of onion from Maharasta, Karnataka, Madhya Pradesh besides other neighbouring states is the key reason of the price rise within just one week. Untimely rains have affected the crops hard; wholesale mandis of onion-producing states have little quantity left for their local usage. 

Only three states are supplying onion currently which is nearly 40 per cent less in comparison to last year. Hence the price has gone up accordingly with the increased cost of transportation. Apart from this, the recent hike in diesel and petrol across the country has also added to the woes of traders. 

“With reducing supplies within last week from 150 trucks to 75-90 trucks, prices has witnessed a two-fold increase,” said Santosh Kumar Yadav, another trader.

Expressing their helplessness, the traders claimed that they have been buying onion at higher rates from its source and are adding Rs 3-5 per kg which is the cost of transportation. We are compelled to buy and sell the commodity at a higher rate after adding some profit,” Yadav said.

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