Due to excess rains in some parts of the country,
onion crops have suffered huge damages making the tuber dearer not only
for the common man but also for the food processing industry.
Already the prices of onions have been fluctuating on the higher side for the last few years and the latest rise – it has reached Rs 60-70 a kg in Mumbai and Rs 80 a kg in Delhi – seems to be the proverbial last nail as even election campaigns of political parties are dominated by the issue these days.
Speaking to FnB News, Umakant Bangar, commissioner, Maharashtra agriculture department, explained the reasons for the hike, “Right now the prices of onions are skyrocketing and the reason is excess of rains in Karnataka which is a major onion producing state and also Maharashtra where crops got destroyed due to more than required rainfall,” and added, “But the prices of onions are expected to be stable after 15 days once the kharif season ones start coming in the market. Presently the prices are sour due to more demand and less supply. Right now the rates are Rs 60 a kg in Maharashtra and Rs 80 a kg in Delhi but very soon the rates will come down to Rs 40 a kg in the retail market. But in the wholesale market it will be available at Rs 25-30 a kg.”
While the hotel industry has simply stopped use of onions as an ingredient for now, the food processing industry may not have such easy solutions. K L Radhakrishnan, senior official from All India Food Processors Association (AIFPA), said, “The food processing industry will be adversely affected by the price rise of onions. Lot of industries in Gujarat dry the onions and procure them in large quantities but now they won’t be able to do so. The cost of production is rising and thus the onions prices will tremendously affect the industry.”
He added, “While the common man and the food processing industry are facing problems due to onion prices, procurers and middlemen are earning good money in the market and farmers are suffering.”
Interestingly, on earlier occasions, when the price of the vegetable had shot up, minister of state for consumer affairs, food and public distribution (independent charge) K V Thomas, as a measure to arrest the rise had sought ban on exports of onions but Union agriculture minister Sharad Pawar was against it as he felt high prices of onions was a temporary phenomenon and banning export would not help in any way in this regard. So the exports continued.
Already the prices of onions have been fluctuating on the higher side for the last few years and the latest rise – it has reached Rs 60-70 a kg in Mumbai and Rs 80 a kg in Delhi – seems to be the proverbial last nail as even election campaigns of political parties are dominated by the issue these days.
Speaking to FnB News, Umakant Bangar, commissioner, Maharashtra agriculture department, explained the reasons for the hike, “Right now the prices of onions are skyrocketing and the reason is excess of rains in Karnataka which is a major onion producing state and also Maharashtra where crops got destroyed due to more than required rainfall,” and added, “But the prices of onions are expected to be stable after 15 days once the kharif season ones start coming in the market. Presently the prices are sour due to more demand and less supply. Right now the rates are Rs 60 a kg in Maharashtra and Rs 80 a kg in Delhi but very soon the rates will come down to Rs 40 a kg in the retail market. But in the wholesale market it will be available at Rs 25-30 a kg.”
While the hotel industry has simply stopped use of onions as an ingredient for now, the food processing industry may not have such easy solutions. K L Radhakrishnan, senior official from All India Food Processors Association (AIFPA), said, “The food processing industry will be adversely affected by the price rise of onions. Lot of industries in Gujarat dry the onions and procure them in large quantities but now they won’t be able to do so. The cost of production is rising and thus the onions prices will tremendously affect the industry.”
He added, “While the common man and the food processing industry are facing problems due to onion prices, procurers and middlemen are earning good money in the market and farmers are suffering.”
Interestingly, on earlier occasions, when the price of the vegetable had shot up, minister of state for consumer affairs, food and public distribution (independent charge) K V Thomas, as a measure to arrest the rise had sought ban on exports of onions but Union agriculture minister Sharad Pawar was against it as he felt high prices of onions was a temporary phenomenon and banning export would not help in any way in this regard. So the exports continued.
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