Steep fall in onion prices in last two weeks

A substantial increase in supplies of onion from key growing states has pushed prices downwards,

Onion prices have fallen by almost 50% in the last fortnight to Rs 40 per kg in retail markets in the national capital region, with new crops arriving.

Onion cost Rs 70-80 per kg two weeks ago.

Potatoes prices have also declined to Rs 19-20 in the NCR from Rs 40-44 a kg a fortnight ago.

Tomato, however, remained costly at Rs 58-60 a kg. Its prices were more or less the same two weeks ago.

Mother Dairy, which has about 400 retail outlets in the national capital region (NCR), is selling tomatoes at Rs 58 per kg, onions at Rs 40 per kg, Rs 18-20 a kg for potatoes depending on the quality.

"A substantial increase in supplies of onion and potato from key growing states has pushed prices downwards, whereas tomato supplies are more or less the same," National Horticultural Research and Development Foundation (NHRDF) Director R P Gupta said.

He added there has been a jump in supply of onion from Rajasthan and Maharashtra, while it continued from Karnataka too, bring down prices by almost 50%. In potatoes, supply is increasing from Punjab and Haryana.

"Supply of tomato is still the same, but in coming days it is expected to increase especially from Madhya Pradesh and prices are likely to come down," Gupta said.

Traders said prices might crash down in December, if this trend continues.

"From the second week of November prices of almost all vegetables, especially onion, are falling on daily basis and with the good forecast of crops and looking at the present scenario in market, it seems like prices would further fall in December," Azadpur Mandi Onion Merchant Traders Association President Surerndera Budhiraj said.

Meanwhile, costlier vegetables such as onions drove retail inflation to 10.09% in October, in double digits after seven months.

Exports of onion in October have fallen sharply by 86% to 22,000 tonnes compared with the same month last year as government raised minimum export price (MEP) to Rs 1,150 a tonne to control rising domestic prices.