Onion prices to rise further by 10% on tight supplies; unseasonal rains affecting crops

Mumbai: Onion prices, which are already ruling at around Rs 80 per kg in most parts of the country, are likely to increase further by 10% on tight supplies due to unseasonal rains affecting the crops.

“The situation is going to be more critical in future and we expect the price will go up by another 10% in the coming days because the current crop, which is expected to hit the market next month, might be affected due to scanty rainfall,” Bombay APMC Director Ashok Valunj told PTI here.

Onions imported from Pakistan are already in the market and the lot from Egypt would hit the market next week, he said, but added that this would not help much in bringing down the prices.

“The 100-200 containers, 30 tonne each, of onions imported will be distributed in the entire country. Mumbai itself needs 80-100 trucks daily, each containing 12 tonnes.

Moreover, our domestic stock is also depleting fast. So imports will not be able to bring down the prices,” he said.

The wholesale price of onion has risen to around Rs 60 per kg at Lasalgaon in Maharashtra while it is already selling at around Rs 80 per kg in retail markets.

About 700 kg of onion worth Rs 50,000 was allegedly stolen from a shop in suburban Mumbai, the police said yesterday.

In Nashik, a farmer complained to the Nandgaon police that about 2,000 kgs of onion was stolen from his place.

Despite the government taking measures, prices have gone up unabated both in the wholesale and retail markets across the country in the last few weeks due to tight supply following shortfall in the domestic output.

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

The Centre has raised the minimum export price of onion to $700 per tonne from $425 per tonne.

State-owned trading firm MMTC has floated a tender for import of 10,000 tonnes of onion. The tender will be opened on August 27.