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Once again, retail prices of onion are set to go through the roof. Traders and officials aren't ruling out the possibility of these prices touching Rs 100 a kg. Currently, prices of the commodity are being quoted at Rs 70-80 a kg at different retail markets.
At the Azadpur mandi in Delhi, wholesale market prices were quoted at Rs 3,250 a quintal, against Rs 2,650-2,800 a week ago. "The jump in wholesale prices is reflected as a sharp increase in retail prices. Though we do not compile retail price data, the prices at various retail vendors in Delhi is 2-2.5 times of what is quoted in the wholesale market," said a source at the mandi.
While onion prices have surged more than three times since April, arrivals have declined from about 18,600 quintals a day to about 7,500 quintals, amid rising demand. Compared to last year, arrivals have dropped to a third. Data from the National Horticultural Research and Development Foundation (NHRDF) showed arrivals at the Lasalgaon market, India's largest onion market, stood at 7,540 quintals on Monday, against 22,430 quintals in August 2012. During the same period, prices have jumped from Rs 540 a quintal to Rs 3,000 a quintal. On August 1, prices stood at Rs 2,401 a quintal.
"The price rise in Lasalgaon is reflected in other markets. And, there is a possibility of further increase in prices till fresh stocks arrive by the end of this month," said a market expert. While there is no shortage of onion, a temporary mismatch in demand is resulting in higher prices. Though the expert said consumption demand was yet to rise, traders said stockists were holding on to stocks and trying to keep the prices high.
Market sources said fresh arrivals would begin in late August.
This year, onion exports to Pakistan have increased. However, overall exports have seen a decline, compared to last year. According to NHRDF data, exports since April stand at 6,15,000 tonnes; in the corresponding period last year, exports stood at 6,95,000 tonnes. On January 31, onion prices had touched a high of Rs 2,331 a quintal in the wholesale market.
