New Delhi, Nasik, Mumbai:
Onion prices are likely to come down in the next 15-20 days, Minister for Food KV Thomas told NDTV today. "New stock of onions will come to the markets in 15-20 days. So by first week of October prices will be down," said Mr Thomas.
But on the ground onion prices are burning a hole in many a pockets. At many places across the country like Mumbai, Patna and Delhi, onions were retailing for a whopping Rs 70 a kilo. In the last two months, onion prices have doubled, edging this once staple vegetable out of the everyday diet.
Martha, a housewife in Central Mumbai, told NDTV that her family, like many, has cut down on onions. "I bought 10 kilos when prices were not so high and now I simply use from that stock. One onion when I actually need three."
At Nasik's Lasalgaon, Asia's largest wholesale onion market, prices have jumped by 16 per cent in just three days.
But farmer Subhash Pingle has not profited from the steep rise. He auctioned the last of his stock for Rs 40 a kilo.
It was bought by merchants like Sohanlal Bhandari who then sold it to wholesalers for Rs 50 to 55 a kilo.
And finally by the time it reached retail markets , the price has zoomed to Rs 70 a kilo.
Added along on the way were various costs - labour, transportation, storage and of course profit margins.
Farmers like Ramnath Shinde in Nasik allege hoarding by merchants has contributed to pushing up the prices. "Merchants who buy at cheap rates have capacity to hold on to the crop. They release it when it becomes profitable to them," he says.
But big merchants like Sohanlal Bhandari refute his allegations. "Traders have no stock at the moment," he claims, adding "Whatever stock comes in, it belongs to the farmer. We purchase the stock daily and only that is kept in our godowns."
Merchants like him in turn blame the poor supply of onions. The say this time around there was 50 per cent reduction in the supply of Onions than normal. First supply of the crop was squeezed by the drought in Maharashtra and now rains have spoilt crops in many parts, he says.
With supply hit, onion prices are likely to burn a hole in our pockets for a while.