Cheer for consumers, grief for farmers and traders. Huge losses for stockists who booked at higher levels on hopes of further price rise
Asian consumers have developed a serious dependence on Indian onion supplies for go-to dishes
The onion, whose soaring prices have been blamed for bringing down past governments, puts Prime Minister Narendra Modi in a tight spot
Earlier, it had authorised states to impose stock limits for certain items under the Essential Commodities Act
The government will also sell onions at 400 ration shops across the national capital
Earlier this week, the Centre had taken several decisions to curb the rise in onion prices
Onion has become costlier by over 33 per cent in the last one week and over 70 per cent in September so far
Onion prices are on the rise despite several measures taken by the central government to boost supply
At Lasalgaon mandi, Asia's largest onion selling market, the onion price jumped Rs 1.50 a kg to Rs 32 a kg, the highest since January last year
Government vigilant, considering MEP to control exports
The fear of price rise gained momentum after reports surfaced that the NAFED procured 50,000 tonnes of onion this season
Seek MSP of Rs 8.5 a kg as they are incurring a loss of Rs 2-3 a kg on sales, if transport cost is included; very few tillers have option of switching to more remunerative crops
Price of export-quality bulbs touches Rs 10 per kg; farmers hold back sale of fresh onions, expecting prices to go up further
It said the true picture of the condition of farmers cultivating onions, cotton and tomatoes was yet to come before the government
Earlier, another farmer from the district, Sanjay Sathe from Niphad tehsil, had sent his earnings of Rs 1,064 for 750 kg of onions to the Prime Minister's Office by way of protest
The farmer sent the money as a protest for the low earnings he received through the sale of the onions
Policy missteps responsible for rising prices
New Delhi, 18 October The central government has decided to increase the open market supply of onion in Delhi from its buffer stock, created through the Price Stabilisation Fund, by two to three times from current levels. And, asked the Mother Dairy cooperatives chain to lower the price of onion sold through its outlets by Rs 2 a kg, to Rs 23.9 a kg.There hasn't been a big rise in retail onion prices here but the kharif crop output might be hit to some extent this year by drought in parts of Maharashtra, a prime supplier. This has already doubled wholesale onion prices in the state over the past week at the key Lasalgaon (Nashik district) market, to Rs 21.5 a kg.However, noted central officials at a review meeting here this week, the kharif crop is higher than last year. And, new crop arrival is expected in two to three weeks, which should take care of supplies. In the interim, the government would use its stock. Around 150 tonnes are being sold in the open market of Delhi presently ..
Drought in Maharashtra might reduce state's output by half
As a hedge against this, the government is making efforts to diversify sowing