Monday, December 20, 2010

Onion Prices Skyrocketed in India

. Monday, December 20, 2010

By stockOzone team

Don't look for any relief just yet when it comes to onion prices - Agriculture Minister Sharad Pawar acknowledges "the situation is serious" and says prices are likely to stay high for the next three weeks.

In Nasik in Maharashtra, a major producer of onions, wholesale prices are up 50%. And in retail markets in metros, prices are up by between 50-60%.

Delhi is paying between Rs. 60 and Rs. 80 a kilo; in the South, Bangalore and Chennai have onions priced between Rs. 70 and 80 a kilo.

Farmers and traders say that the price rise is due to unseasonal rains in onion-producing areas in Maharashtra, Gujarat and Southern India - a part of the standing crop has been ruined and that's resulted in a major shortfall. The next batch of onions will take between a fortnight and a month to arrive in stores.

The government announced last night that exports of onions have been suspended till January 15 to help improve the supply and reduce prices. In Delhi, Chief Minister Sheila Dikshit has called a meeting to discuss the crisis. Meanwhile, a few traders in North India have, for the first time, started importing onions from Pakistan, where the prices are a third of Indian rates.

Disclosure: None

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