Nasik:
From the onion hub of Lasalgaon in Maharashtra's Nasik district to the wholesale market in Navi Mumbai to the housewife in Mumbai, NDTV tracks the journey of the onion as it hits an all-time high.
Unseasonal rains have hit onion farmers hard. Nearly 70 per cent of the crop has been destroyed in Lasalgaon.
"The rains have hit the onion yield. We used to get 1,000 kgs of onions per acre. This time, we got just about 15 kilos per acre," said Laxman Bapu Shinde, onion farmer.
Farmer sells to trader for Rs 20 per kgThe rains, it seems, was just a trigger: The officials are openly calling it a larger problem of speculation by traders.
"The average purchase rate of a trader here is about Rs 3,000, but they go to the cities and claim it's nearly Rs 8,000 and that's how the rates go up. It's all the fault of the traders. They loot the people," said Sangdeorao Holkar, Director, National Agricultural Cooperative Marketing Federation of India.
Trader sells to wholesaler for Rs 30-80 per kg
The situation on the ground is already reflecting in the stand-off between the Union agriculture Minister and the NAFED chief.
"It's a straight fact. Onion prices have gone up. Due to heavy rains, a lot of the crop is damaged," said Sharad Pawar, Union Agriculture Minister.
"We cannot understand this price rise, because the arrivals are still alright. There are no reports of any major damage to the crops," said Sanjeev Chopra, MD, NAFED.
The government, on a back foot, banned exports last evening. In less than 24 hours, prices in Lasalgaon crashed by 25 per cent.
Lasalgaon: Wholesale price
Tuesday: Rs 60 per kg
Wednesday: Rs 45 per kg
But the onions at the city wholesalers on the outskirts of Mumbai is still higher.
Navi Mumbai: Wholesale price
Tuesday: Rs 60 per kg
Wednesday: Rs 45 per kg
And this is finally what the consumer in Mumbai is paying:
Mumbai: Retail price Tuesday: Rs 60 to Rs 70 per kg
Wednesday: Rs 60 to Rs 70 per kg
"Last week I bought onions for Rs 40 per kg. This week it is 60. So instead of buying one kilo, I bought a quarter kilo," said K Kamala, Housewife.
What's pushing up the prices so much at every level: Traders' speculation or rains? The jury is out on that.