Onion prices to soften with arrival of new crop: Sharma

Onion prices will ease with the arrival of new crops in markets, Commerce and Industry Minister Anand Sharma said today.

Onion prices both in wholesale and retail markets have remained at an unaffordable level since July due to seasonal shortages. The vegetable is being sold at Rs 60-70 per kg in most retail markets despite a falling trend in wholesale markets.

"I think with the fresh arrivals,prices will come down," Sharma told reporters here.

The new crops will start arriving in markets  next month. In fact, they have already started arriving in small batches.

The Minister said there has been a marginal loss of crop this season.

"Onion, when you look at the production, it is only in the few states. 60% of country's onion comes in the rabi crop," he said.

He said the commerce ministry had imposed a minimum export price of $900 on onion to discourage shipments and enhance availability in the domestic market.

"Government is keeping a watchful eye. States have a role to play. There is a lot of hoarding," he said.

He said that there is a huge difference of prices.

"We have been appealing that the states must also be proactive. The central government cannot go into the states and check hoarding," he added.

About 600 tonnes of onions are expected reach Mumbai port next week.