There has been some improvement in prices of oilseed and gram after the central government increased their import duties
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.
Earlier on August 14, the government imposed MEP of $650 per tonne. MEP is is a benchmark price below which onion cannot be exported.
India exports about 1.5 mt of onion every year.
Private traders had placed orders early this month with Egyptian suppliers at $320 a tonne
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.
However, the estimates could change in the coming months, as full impact of excess rainfall and floods on the standing soybean and urad crops in central and western India in late August and September has not yet been fully taken into account.
The cost of production of onion is around 800-900 per quintal, while prices are hovering around 500 per quintal across major wholesale markets.
High vegetable prices were seen as one of the key reasons for the debacle the ruling Congress party faced in four of the five Assembly elections concluded last month.
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.
Wholesale inflation fell to a 4-month low of 1.31 per cent in August due to a decline in prices of vegetables and fuel, even though onion and potato prices spiked, according to official data released on Tuesday. Wholesale price index-based inflation fell for the second straight month in August after it hit a high of 3.43 per cent in May. Inflation in July was 2.04 per cent. In August last year, WPI inflation was (-) 0.46 per cent.
Binu Alex, co-founder and editorial director of www.commodityonline.com, in an interview to Syed Firdaus Ashraf/Rediff.com, says demand-supply imbalance arising out of the government's inability to preserve the crop for non-harvesting season is the root cause behind the price rise.
During this time of the year, potatoes and vegetables come from Punjab and Haryana.
Retail price of onion is expected to ease across the country in the second week of November as dealers foresee plenty of fresh stocks to flood the markets.
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.
Lasalgaon, Pimpalgaon mandis halt auctions to arrest the decline.
The steep hike in onion prices set alarm bells ringing in the government, which has imposed a ban on onion exports till January 15, 2011, to increase availability in the domestic market.
India's potato and tomato production could be marginally less in 2021-22 as compared to the previous year while onion output could be almost 17 per cent more than last year. This was stated in the first advance estimate of horticulture production released on Monday. The government also said total horticulture production is estimated to be at 333.3 million tonnes, a slight decrease of about 1.35 million tonnes (mt)?(or 0.4 per cent) over 2020-21.
The Reserve Bank on Wednesday retained the retail inflation projection at 4.5 per cent for fiscal 2024-25, with Governor Shaktikanta Das stressing that the central bank will have to closely monitor the price situation and keep the "inflation horse" under tight leash lest it may bolt again. Unveiling the October bi-monthly monetary policy, the Governor also said the flexible inflation targeting (FIT) framework has completed 8 years since its introduction in 2016 and is a major structural reform of the 21st century in India.
Devidas Parbhane said with onion prices touching new lows, farmers like me may be meeting the same fate as other farmers who committed suicide
Traders estimate around 30 per cent of rabi crop damage.
This could be the reason why Prime Minister Narendra Modi mentioned tomato, onion, and potato as his government's 'TOP' priority, in an election rally on February 5 in poll-bound Karnataka.
Prices of the kitchen staple in Azadpur mandi, Asia's largest wholesale market, were ruling at Rs 60 per kg today as supplies were below normal.
Agriculture ministry to prepare blueprint for purchasing onions directly from farmers and the expenditure on damages would be shared equally between the Centre and state governments.
Onion prices may jump during the Eid festival in the UAE as the Indian government has suspended fresh exports of the commodity for a fortnight in the wake of soaring domestic prices.
Onion prices had peaked to Rs 57 per kg on August 22.
Not only primary vegetables, but also additives like garlic, ginger and chilly have recorded a sharp increase in prices
Onion prices have increased 150% over the last few months
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.
Trade sources believe that tomato supply from Maharashtra has slumped due to incessant rain in the state towards the fag end of the monsoon season, reports Dilip Kumar Jha.
Increased production of pulses, oilseeds, and cereals will help boost domestic supplies and contribute to keeping inflation low in the coming months.
Onion prices have been ruling at Rs 70-90 per kg in most parts of the country and even touched Rs 100 per kg in some cities like Patna and Jammu.
Agriculture Minister Sharad Pawar said on Thursday onion prices will ease in the next two-three weeks as fresh output arrives from Maharashtra and other states, providing relief to consumers.
Onion prices have been rising due to speculation amid anticipation of below normal monsoon despite sufficient supply in the country.
'We told the government that we won't dance to their tunes this time.'
The Aayog recently met the ministries on the issue.
Build up inflation rate in the financial year so far was 2 per cent compared to a build up rate of 4.56 per cent in the corresponding period of the previous year. Inflation in food articles as a group rose to 11.08 per cent during the month as against 9.80 per cent in the previous month, mainly driven by exorbitantly high onion prices, the rates of which spiked by over 172 per cent from a year-ago. The annual rate of inflation, based on monthly wholesale price index was at 0.16 per cent in October.
Onion supply to the city, which comes from Maharashtra, Rajasthan and Madhya Pradesh, is normal at 12,000 quintals in Azadpur, Asia's largest wholesale market, it added.
Raw green chickpeas is nicest lightly boiled with chopped onion. But try this take.
Prices start downward trend but rainfall, supply restrict climbdown.
