Onion prices in retail market shoot up to Rs 80

Prices of onion are expected to remain high due to rain and delay in arrival of the new crop, said APMC

Prices of onion in retail market shot up to nearly Rs 80 in few areas of Delhi, despite the city government's attempt to control its prices by selling it at Rs 30 from its Fair Price Shops (FPSs).

According to officials, the wholesale price of onion at Azadpur Mandi was today recorded in the range of Rs 40-53. However, retail prices in many areas across the city varied between Rs 70-80.

"Today, 67 trucks of onion came to Azadpur Mandi, maximum of 55 trucks from Rajasthan. The wholesale price in the Mandi remained i nthe range of Rs 40-53.

"Prices of onion are expected to remain high due to rain and delay in arrival of the new crop," said, Anil Malhotra, member of Azadpur Mandi Agricultural Produce Market Committee (APMC).

Even daily retail prices of essential commodities by the Centre's Department of Consumer Affairs (Price Monitoring Cell) shows onion being sold at Rs 61 in retail prices in Delhi.

The ripple effect of rising wholesale prices reflected in the retail market, as onions were sold at Rs 80 at some of the posh localities in the city.

"From this week, I am buying onion for Rs 75-80, which I was getting for 50-60 till last week. Prices of onion have gone sky high," said Ashima Gupta, a resident of Greater Kailash-2 area in south Delhi.

Although, Delhi government from this month is selling onions at a rate of Rs 30 from its 280 FPS and mobile vans, but limited number and lack of knowledge among people is preventing people of Delhi to avail this facility.

Some residents also complained about the quality of onion being sold by the government.

"With the price of onion touching Rs 70 in my locality, I am going to cut down on the consumption. Quality of onion being sold at FPS shop is not satisfactory so I am not buying it from there," said Renuka Sharma, a resident of Janakpuri area.

A similar increase in prices is being witnessed in other parts of the Delhi and the national capital region (NCR).

"We are closely monitoring the situation and will continue to sell onion at Rs 30 till its price comes under control. We are trying to popularise onion being sold at cheaper rate from FPSs and will try to send mobile vans at maximum location," senior government official said.

Onion prices are hardening due to the fall in production and sluggish supply of stored onions, which are meant for meeting demand during the lean July-September.

Total onion production is estimated to be lower at 189 lakh tonnes in 2014-15 crop year (July-June), slightly lower than 194 lakh tonnes a year ago.

Maharashtra, Karnataka and Madhya Pradesh are the top three onion-producing states in the country.