Onion at ₹50/kg, fresh stock released to control prices

  • | Tuesday | 7th November, 2023

Indore: After tomatoes its high onion prices are seen pushing food inflation and raising challenges for the incumbent government as it is known to have toppled governments in the past. A squeeze in daily supplies has pushed onion prices to Rs 50 a kg in the retail market though release of stocks by National Agriculture Cooperative Marketing Federation (NAFED), an apex organisation of the Ministry of Agriculture, has capped the upside in the retail market. NAFED has 700 tonne onion in stock in MP. Daily arrivals of onions have dropped to 40,000-60,000 bags (1 bag weighs 55 kg) as against 80,000 bags earlier. Mohan Goud, an onion trader from Choithram market said, Supplies of good quality onions have dropped but release of stocks by the government agency and supplies from new harvest have stagnated the prices of onions. The quality of the new season supply is inferior due to high moisture content. Supplies from the new season harvest have touched 3,000-5,000 bags in a day in the Choithram market, said traders. In the Choithram market, good quality onion is priced at Rs 35 a kg and in retail it is offered at Rs 50 a kg. Amit Kumar Taneja, state head, NAFED, MP said, In MP we have 700 tonne onions in stocks and we have started releasing the stocks at multiple centers in the state. We have released in bulk in many mandis of the state like Bhopal, Ratlam and also selling onions at Rs 25 a kg to consumers through our mobile vans. NAFED is selling onions through mobile vans in Indore, Bhopal, Gwalior, Bhind, Murena, Damoh, Ashoknagar, Sagar and others. We also published the following articles recentlyGovt to release higher quantities of onions at subsidised rate in retail marketThe Indian governments intervention in selling onions at retail markets has successfully reduced prices, prompting the consumer affairs ministry to sell higher quantities at subsidized rates in targeted cities. Around 1 lakh tonne of onions will be offloaded in the retail market this month, with cities selected based on data and historical price trends. This move has already cooled down retail prices in cities like Indore, Bhopal, Raipur, and Jaipur. The wholesale price of onions has also dropped due to government interventions, such as fixing minimum export prices and increased supply. Additionally, the Food Corporation of India sold 2.9 lakh tonnes of wheat from its buffer stock.Poor supply pushes up tomato, onion prices once again in APThe prices of onion and tomato have doubled in the last week across the state due to high demand and poor supply. Severe drought-like conditions in Maharashtra and Karnataka are the main reasons for the sudden spike in onion prices. Traders predict that onion prices may cross the 100 per kg mark in the next 10 days. Similarly, poor inputs from the Madanapalli market have caused a spike in tomato prices. This increase in prices has become a major concern for the public, who are unhappy with the quality of stocks available at Rythu Bazaars.High onion prices sting consumersOnions prices in Ahmedabad have skyrocketed, with retail prices reaching Rs 100 per kilogram from Rs 35 at the beginning of October. The sudden increase in prices is due to reduced supply and poor quality caused by adverse weather conditions in onion-growing areas. The APMC market yard has seen a decline in supply, with only 4,000 to 4,500 quintals compared to 8,000 quintals last year. Prices are expected to continue rising for the next 20 days and may reach Rs 120-140 per kilogram at retail.

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