Onion untouchable for commoner in India

There has been no apparent impact on the Government’s two-pronged actions- ban on export and no customs duty on import- to ease the prices of onions in retail market across India.

For commoners in India the onion, a favourite commodity in kitchen, has become an “untouchable” as prices refused to come down from Rs 80/90 a kilo despite government’s readiness to bring down the cost.

With onion prices, other like tomatoes and peas continue to rise, which normally becomes affordable for “aam admi” with the onset of winter, a retailer in Kolkata said.

” I’m baffled to understand why the prices of onions are so high when you get as much as you order order with current price,” he said, showing his unsold vendor piled up in mounds.

“My clients are all middle class and low budged people, who stopped buying the commodities like garlic and ginger for past weeks,” he said.

“In newspaper and TV reports so many things were said- like ban on onion export until Jan 15 and zero per cent customs duty on import, but I see onion laden trucks lined up at wholesale markets in Kolkata,” he said confused with his unsold commodities.

In Delhi market sources said the prices might normalise in two to three days.

Bijender Singh, the chief of National Agricultural Cooperative Marketing Federation of India Limited believed the hoarding was primary cause for soaring of prices of onions.

Hours after abolishing customs duty, the government on Wednesday asked state trading agencies — STC, MMTC and PEC — to immediately go for onion imports to boost domestic supply in the wake of prices spiralling to Rs. 70-80 a kg.

“I have asked STC, MMTC and PEC to explore the option of quick delivery of onion,” Commerce Secretary Rahul Khullar said.

He said the state trading firms have been asked to “look around” for import contracts for quick delivery because “I need onion now” and not after six months.

The government’s concerted action follows a steep rise in onion prices, which soared from Rs. 10-11 in June to Rs. 70-85 per kg in retail markets across the country.

Khullar said that onion prices have shot up because of damage to the crop in the producing states (like Maharashtra) by unseasonal rains.

Wholesale prices in Delhi and the main producing region of Nashik fell by about 40 per cent, but retail prices of the commodity continued to rule at Rs 70-80 per kg in the national capital.

The wholesale market of Lasalgaon, in Nashik district, onion prices came down to Rs 3,702 per quintal from Rs 5,200 per quintal on Tuesday.

But nothing has been visible in retail market as prices of the commodity remained “untouchable.”