Govt charts ways to curb rising onion prices

As retail prices of onions rise steeply across the country, the consumer affairs ministry on Monday took stock of the situation, along with representatives from the agriculture ministry and other related departments.

Officials said the secretary of consumer affairs could, in the next few days, call on his counterparts in agriculture and commerce to work out a method to bring down the prices. “We have to work out a balance between the interests of consumers and those of farmers,” one of them said after the meeting chaired by consumer affairs minister K V Thomas.

In the capital, the retail price of onions has moved up by around 24 per cent since August 1 and was selling at around Rs 21 per kg last week, going by data showed by the department of consumer affairs. In Mumbai, the price moved up by Rs 3 per kg during the same period, while in Chennai it has went up by Rs 5 per kg during the same period.

Officials said steps like more market intervention through direct sales and curbing exports could be considered by the government. On Monday, Thomas also had a brief meeting with agriculture minister Sharad Pawar, where the issue is also believed to have been discussed.

The government, on its par,t has raised the minimum export price (MEP ) of onions eight times since June 8 — the last being in late August. The MEPs were raised to curtail export and improve domestic supplies as retail price showed little signs of falling.

From a low of $170 per metric tonne, the MEP of onion now stands at $300 per tonne, even though exports were less as compared to last year. Official figures show that till July 2011, the country had exported 4,52,409 tonnes of onions — almost 34 per cent less than the same period last year.

In wholesale market, steep rise in prices of onions pushed up food inflation to double digits for the week ended August 20.