Gujarat in tears over onion prices

Onion prices have over-scaled expectations. Although, usually, onions consumption is comparatively less during three to four months around monsoon, the heavy rains in Maharashtra have devastated the crop creating a marginal short-supply against the demand in Gujarat.

"Prime factor responsible for the rise in onion prices is the rains in Maharashtra where the crop has been destroyed completely, and supply of onion from Nashik has stopped suddenly," said Mahesh Parekh, a leading onion trader in the city.

With religious festivals like Janmastami falling in the month of August, consumption of onion in the state during this time is low as far as household consumption is considered.

But in the open market, operators involved in food and beverages business form a huge demand for onion, as it is one of the essential ingredients in various items prepared and served by them.

Its is festive time in Saurashtra, and people in huge number are seen enjoying the taste of various spicy food items garnished with costly onions.

"Onion prices, which were in parity of Rs 20 to Rs 70 per 20 kg, have suddenly shot, moving up the price range to somewhere between Rs 55 and Rs 185 per 20 kg," said Tejas Patel, partner in a fast-food joint venture in the city.

"We generally deal in Chinese preparations, pau bhaji, south Indian dishes, continental stuff etc that require onion as one of the essential ingredients. And it is boom time for our business during these festive days of Janmastami as people from the region prefer to eat outside during this time. So, we are bound to purchase onions even at much higher prices," he added.

As far as consumption of onions across the region is concerned, it actually downscales during the month of Shravan for retail traders. However, wholesalers have to meet huge demand from the catering outfits.

"Usually, onion consumption varies by 25 per cent on higher side in wholesale market, and declines by 10-15 per cent in retail market during the month of Shravan," said Bhavanbhai Thakker, an onion wholesale trader in the city.

Another factor pushing the demand for onions up is good rains across the region, which has led to better purchasing power of the rural segment.

As a result, more and more rural people are making their way to cities and other urban destinations to participate in celebration of Janmastami in pomp and splendour. And they enjoy their sojourn eating food at various food-joints in cities.

All this has resulted in more demand for onions and hence, pushed the prices up , nearly 10 per cent over last year, Thakker said.

"Again supply of onions from Maharashtra has been hindered, which has also been instrumental in raising the demand of onions across the region," he added.

However, domestic consumption of onions being low, housewives have no complaints. But for them, who do not follow Shravan month fasting, it is a matter of adjusting the budget.

"The steep rise in the prices of onions is making us adjust our budget by purchasing half the quantity of our basic requirement of onions. We use onions, which is one of the essential ingredients for our daily food requirement, in a more balanced manner now, and not very lavishly," said Beena Patel, a housewife from Rajkot.