Onion prices to soften by early next month: Thomas

Onion prices, which have again gone up to Rs 70 per kg in retail markets, are expected to soften by early next month with supplies from Andhra Pradesh and Karnataka improving, Food Minister K V Thomas said today.

He also said the Centre has asked producing states like Maharashtra to crack down on hoarders of onion, a politically sensitive commodity.

Normally, onion prices rise during the lean period of June-August. But prices remained high both in retail and wholesale markets this month with rain in southern states delaying harvesting.

"Onion prices will begin normalising by end of this month or early next month as more produce will come from Andhra Pradesh, Karnataka and Tamil Nadu," Thomas told PTI.

Onion exports have declined after the government imposed minimum export price (MEP) of USD 650 per tonne.

Imports have been permitted, but no shipment has arrived so far, the Minister said.

Thomas attributed the slight increase in food inflation in August, apart from high onion prices, to increase in the minimum support prices (MSP) of major farm items by the government. "We have raised MSP of major commodities. Prices in the open market cannot be lower than MSP," he said.

Meanwhile, wholesale and retail prices of onion have gone by Rs 10 a kg in the national capital today as supplies have dried up in Maharashtra and Rajasthan, while arrivals from southern states are not in full swing due to rain there.

In Delhi's Azadpur market, wholesale price rose to Rs 60 a kg today from Rs 50 a kg yesterday. The price rise is reflected in retail markets, with vendors are charging as high as Rs 70 a kg today as against Rs 55-60 a kg few days ago.