Onion, aptly called the politically sensitive vegetable, is once again making headlines for its rising price. A staple in Indian food, onion is not a mere vegetable with nutritional value and healing touch, but it also has the power to bring down governments.
Onion prices have soared to Rs 80/kg in some Indian cities and is predicted to touch Rs 100 a kg – all due to shortages caused by excess rains this monsoon season. Stocks are depleting and there is no new stock. More bad news is that prices are unlikely to reverse till September-end.
At Rs 80/kg, onion in India is currently the most expensive in the world and it is reported that traders have placed orders from China and Pakistan, which is likely to take 15 days to arrive.
One option the government might consider is to impose a ban on exports, but that may not have any impact on the price. India has already lost the race in the export market to low-priced China and Pakistan.
The price in India has suddenly shot up in a month. In Hyderabad, between June and August, it has gone up from Rs 32 to Rs 42. In Chennai, it rose from Rs 27 in Rs 60; Ahmedabad Rs 30 to Rs 65; Lucknow Rs 25 to Rs 70.
Maharashtra is the leading producer of onions in India with 32.6 pc contribution followed by Karnataka 17.6 pc, Gujarat 10 pc and Bihar 7 pc. While drought hit the crop in Maharashtra last year, rainfall has hurt the crop in AP, Karnataka and Rajasthan this year.
As on August 12, 2013 wholesale prices ranged from Rs 4,781 a quintal in Delhi to Rs 5,800 in Chennai against last year's Rs 669 a quintal in Delhi and Rs 1,100 in Chennai.
Onion prices have soared to Rs 80/kg in some Indian cities and is predicted to touch Rs 100 a kg – all due to shortages caused by excess rains this monsoon season. Stocks are depleting and there is no new stock. More bad news is that prices are unlikely to reverse till September-end.
At Rs 80/kg, onion in India is currently the most expensive in the world and it is reported that traders have placed orders from China and Pakistan, which is likely to take 15 days to arrive.
One option the government might consider is to impose a ban on exports, but that may not have any impact on the price. India has already lost the race in the export market to low-priced China and Pakistan.
The price in India has suddenly shot up in a month. In Hyderabad, between June and August, it has gone up from Rs 32 to Rs 42. In Chennai, it rose from Rs 27 in Rs 60; Ahmedabad Rs 30 to Rs 65; Lucknow Rs 25 to Rs 70.
Maharashtra is the leading producer of onions in India with 32.6 pc contribution followed by Karnataka 17.6 pc, Gujarat 10 pc and Bihar 7 pc. While drought hit the crop in Maharashtra last year, rainfall has hurt the crop in AP, Karnataka and Rajasthan this year.
As on August 12, 2013 wholesale prices ranged from Rs 4,781 a quintal in Delhi to Rs 5,800 in Chennai against last year's Rs 669 a quintal in Delhi and Rs 1,100 in Chennai.
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