Festival demand pushes onion prices up

Festival demand has pushed the onion price to Rs 15-18 per kg in the retail market. The Karnataka onion has started coming into the Mumbai market but it couldn't tame surging prices. Till Dusherra the shortage is expected to continue, said market sources.

"Because of the high moisture content in the onion, traders want to sell it off fast. This will create shortage in the market and will increase the price further. Good quality onion is hardly available in the market," said market sources.

The wholesale price of Pune onion went up to Rs 100-125 per kg in Mumbai Agricultural Produce Market Committee (APMC). In Nashik, onion prices is Rs 100-110 per kg.

Due to the high moisture content in the onion the traders are worried to pile-up the stock to meet the festival demand. Surging onion prices is also ruffling political feathers. In 1998 BJP had lost power in four states, which was supposed to be the effect of onion price.

"Nasik is the prime producer of Onion in India. There the farmers are facing huge stock loss due to rapid weather changes. Under normal circumstances, about 100-120 trucks of onion are coming to the Vashi wholesale market, which down to about 50 now," said Ashok Valunj, director, Mumbai APMC.

The shortage of onions is expected to last almost the end of October. Government has asked the wholesale dealers to take all measures to control onion price. But the situation is worse comparing with last year, said market sources.