Onion prices skyrocket to Rs 65 per Kg
Be ready to shed some tears as the price of the humble onion , the base for most Indian dishes, has spiralled beyond the reach of the common man — jumping from Rs 30 per kg just two weeks ago to Rs 65 today. And what’s worse, it is expected to rise further in the coming days
Scant rainfall in Karnataka — a major onion producing state — this year has brought down the kharif onion crop to 60 percent of the regular production.
According to market sources, the price of medium-sized onions has gone up from Rs 2,000 per quintal to Rs 2,500 while the price of fine quality onions has gone up from `3,000 per quintal to Rs 3,300.
A few wholesale dealers have resorted to selling only for three kilos per customer.
In India, onion is cultivated extensively in Maharashtra and Gujarat as a cash crop due to its high potential for export.
The limited production of onion in Karnataka and neighbouring states has triggered a huge demand for onion in South India.
“This year due to less rainfall we don’t have good crops. This is causing price rise since farmers will find it difficult to retain their crops. The arrivals is less from neighbouring states and so we are getting the load currently from Chitraduraga, Nasik, and Mannad district in Maharashtra. But now, there is a shortage in supply from these districts as well. The price might rise further in coming days,” BL Shankarappa, president of APMC Merchants Association, told Bangalore Mirror.
Medium-sized onions are sold at Rs 58 per kilo in Hopcoms, the state’s co-operative marketing society, but retail vendors are selling it at a higher price. Venkatesh Kumar, a provision stores owner and resident of Yeshwanthpur, said: “We are selling onions at Rs 65 per kg but still not getting much profit. The prices differ according to the size and it does impact customers.”
Lakshmi M, a homemaker in RT Nagar, has been spending long hours at the vegetable market of late. Her throat goes dry almost every day after continuous bargaining with the vendors due to skyrocketing prices of vegetable.
“Vegetable prices have risen massively reflecting hugely on my monthly expenditure. The prices of onion have skyrocketed and without onions it is difficult for us to cook. As festival season is going to start the prices might be increased even more and the government should not increase the price from which many people will be affected,” she said.
Kharif production was only 60 per cent, and demand from south India has shot up
THE 2010 ONION CRISIS
* The onion crisis of 2010 describes the dramatic rise in the cost of onions across markets * The crisis was caused by errant rainfall in the onion producing regions which led to a shortage of onion production * In November 2010, unseasonal and excessive rainfall in onion-producing regions such as Nashik in Maharashtra delayed the arrival of onions in markets * In December, when fresh crop usually begins to arrive, onion shipments were reduced from 2,000-3,000 tonnes a day to 700-800 tonnes a day in New Delhi markets, raising the price of onion from 35 to Rs 88 per kg in the period of one week. However, at some online portals it was being sold for around Rs 30-40/kg
POLITICALLY SENSITIVE
In 1998, onion prices touched `40 per kg in the retail market and resulted in Sushma Swaraj, then CM of Delhi, losing the assembly elections
High price of onions was responsible for bringing down the central government in 1980
15 million tonnes The amount of onions Indians consume a year
About 30% of the country’s onion production is accounted for by Maharashtra
18.9 million tonnes The amount India harvested in 2014/15. However, a significant amount was damaged due to untimely rains and hailstorms during February to April
China leads in global onion production with 40% market share
India’s onion exports
2011-12 1.31 million tonnes worth $359.35 million
2013-14 1.48 million tonnes worth $524.99 million
2012-13 1.67 million tonnes worth $361.8 million
Scant rainfall in Karnataka — a major onion producing state — this year has brought down the kharif onion crop to 60 percent of the regular production.
According to market sources, the price of medium-sized onions has gone up from Rs 2,000 per quintal to Rs 2,500 while the price of fine quality onions has gone up from `3,000 per quintal to Rs 3,300.
A few wholesale dealers have resorted to selling only for three kilos per customer.
In India, onion is cultivated extensively in Maharashtra and Gujarat as a cash crop due to its high potential for export.
More than 20 percent of the area under its cultivation is found in Maharashtra which accounts for 30 percent of total onion production. Himachal Pradesh, Orissa, Karnataka, Uttar Pradesh, Tamil Nadu and Madhya Pradesh are also major producers.
The limited production of onion in Karnataka and neighbouring states has triggered a huge demand for onion in South India.
“This year due to less rainfall we don’t have good crops. This is causing price rise since farmers will find it difficult to retain their crops. The arrivals is less from neighbouring states and so we are getting the load currently from Chitraduraga, Nasik, and Mannad district in Maharashtra. But now, there is a shortage in supply from these districts as well. The price might rise further in coming days,” BL Shankarappa, president of APMC Merchants Association, told Bangalore Mirror.
Medium-sized onions are sold at Rs 58 per kilo in Hopcoms, the state’s co-operative marketing society, but retail vendors are selling it at a higher price. Venkatesh Kumar, a provision stores owner and resident of Yeshwanthpur, said: “We are selling onions at Rs 65 per kg but still not getting much profit. The prices differ according to the size and it does impact customers.”
Lakshmi M, a homemaker in RT Nagar, has been spending long hours at the vegetable market of late. Her throat goes dry almost every day after continuous bargaining with the vendors due to skyrocketing prices of vegetable.
“Vegetable prices have risen massively reflecting hugely on my monthly expenditure. The prices of onion have skyrocketed and without onions it is difficult for us to cook. As festival season is going to start the prices might be increased even more and the government should not increase the price from which many people will be affected,” she said.
Kharif production was only 60 per cent, and demand from south India has shot up
THE 2010 ONION CRISIS
* The onion crisis of 2010 describes the dramatic rise in the cost of onions across markets * The crisis was caused by errant rainfall in the onion producing regions which led to a shortage of onion production * In November 2010, unseasonal and excessive rainfall in onion-producing regions such as Nashik in Maharashtra delayed the arrival of onions in markets * In December, when fresh crop usually begins to arrive, onion shipments were reduced from 2,000-3,000 tonnes a day to 700-800 tonnes a day in New Delhi markets, raising the price of onion from 35 to Rs 88 per kg in the period of one week. However, at some online portals it was being sold for around Rs 30-40/kg
POLITICALLY SENSITIVE
In 1998, onion prices touched `40 per kg in the retail market and resulted in Sushma Swaraj, then CM of Delhi, losing the assembly elections
High price of onions was responsible for bringing down the central government in 1980
15 million tonnes The amount of onions Indians consume a year
About 30% of the country’s onion production is accounted for by Maharashtra
18.9 million tonnes The amount India harvested in 2014/15. However, a significant amount was damaged due to untimely rains and hailstorms during February to April
China leads in global onion production with 40% market share
India’s onion exports
2011-12 1.31 million tonnes worth $359.35 million
2013-14 1.48 million tonnes worth $524.99 million
2012-13 1.67 million tonnes worth $361.8 million
