Though the Centre has asked states to crack down on speculators and hoarders to check spiraling prise of onion, state governments could do little as the commodity is not under the purview of the Essential Commodities Act, a senior government official said.
Though three crops of onions are raised in a year - early kharif, late kharif and rabi - their harvests are not evenly spread out.
Wholesale prices too rose at the same pace to 45-55 per kg in the national capital and other states.
Rangarajan, who was answering questions on onion prices touching Rs 100 per kg in some cities, said the impact on inflation would not last long.
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Looking to profit from the boom in onion prices across the country, some farmers in Bhavnagar district of Gujarat, the third largest producer of the vegetable in the country, are uprooting the crop from their fields almost a month before they are ready for harvest.
Onion prices crashed to Rs 5-20 a kg in wholesale markets of the national capital on Tuesday on the back of improved supply, but retail prices of the vegetable remain high at Rs 40 per kg.
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In Delhi, onions are being sold at Rs 50-60 per kg, but there were reports that in some posh colonies, vendors are even charging Rs 65-70/kg.
Onion prices on Thursday eased by Rs 10 to quote at Rs 60-70 a kg in the metropolitan cities of Delhi, Mumbai and Chennai, owing to an up to 52 per cent fall in wholesale prices in last three days following steps unveiled by the Centre to boost domestic supply.
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A hotel owner in Bihar was shot dead after he refused to serve patrons onion with their meals.
In the retail markets, fresh onion is sold between Rs 10 and Rs 12 a kg. Now, farmers have to sell onion at a loss of Rs 2-3 per kg if transport cost is included.
Earlier on August 14, the government imposed MEP of $650 per tonne. MEP is is a benchmark price below which onion cannot be exported.
The domestic availability of onion has been affected on account of damage to kharif crop because of unseasonal rains in key producing states including Maharashtra.
Retail prices of onion have soared to Rs 70-80 per kg in most parts of the country, after dropping to Rs 50-55 per kg a week ago from the same high level due to seasonal shortages.
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'You peel one layer, then another layer, then another, but in the end, you will see that there is no onion inside.' 'This package has been packaged well, but there is nothing much inside the package!'
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Agri co-operative Nafed on Monday reduced onion prices by Rs 5 per kg, selling it for Rs 35 per kg in the national capital through its five retail stores.
After government's measures like export ban and import from Pakistan, average wholesale prices of onion in Nashik district's various Agriculture Produce Market Committee (APMC) markets have come down by around 45 per cent to Rs 2,071 a quintal in the last three days.
A Ganesh Nadar speaks to onion farmers in Nashik, India's largest wholesale onion market, about the high prices.
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In case of onions, inflation skyrocketed to 127.04 per cent, while for the eggs, meat and fish segment the rate of price rise was 5.76 per cent.
The Aayog recently met the ministries on the issue.
The country has produced a record harvest, but many farmers in the onion bowl of Maharashtra have lost a large share of their crop damaged in storage, adding to the country's inflation woes.
The Bangladeshi prime minister said that India's sudden decision to stop onion exports has led to a bit of difficulty for her countrymen.
The off-spot prices were Rs 3.50 a kg two weeks before, with farmers planning to dump on the road instead of selling in mandis.
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