new Delhi: Onion prices have started making the common man cry. The wholesale price of onion in Azadpur Mandi, Delhi, the capital of the country, has gone up to Rs 50 per kg, which is the highest level since 2015. At the same time, in Lasalgaon (Maharashtra), Asia's largest onion market, onion has started being sold at Rs 50 per kg. Traders said that onion stock in the country is very low, due to which the arrival in the mandis is decreasing. Onion prices are increasing due to less inward consumption. Rajendra Sharma, a businessman and president of the Onion Merchant Association, Azadpur Mandi, said that due to heavy rains in the states of South India, onion crop is getting worse and there is a delay in the preparation of new crop, onion prices are getting more support. . Sharma said that earlier in 2015, onion prices had gone above Rs 50 a kg.
To keep the price of onion under control, the government last week set its minimum export price ie MEP at $ 850 per tonne so that the ban on exports does not reduce the supply of onion in the country's markets. According to the Directorate General of Foreign Trade (DGFT) notification dated 13 September, exports of onion at a price not below $ 850 per ton (FOB) will not be allowed until further orders are made in this regard.
An onion exporter from Nashik said that there is currently no scope for export at such a high price. At the same time, the price has increased significantly in the domestic market too, so there will be no margin in exports.
Earlier in June, when the price of onion had increased, at the same time, the government had withdrawn 10 percent incentive on onion under the Merchandise Export from India Scheme i.e. MEIS, to put a brake on exports.
Here, onions are being sold in the open market from the buffer stock lying with the government agency NAFED, but all these steps of the government in controlling the price of onion are failing because the price of onion in the last two months Has increased a lot. According to the price list available on the APMC website, onion price in Delhi was Rs 22.50-50 per kg on Friday as compared to Rs 20-40 per kg a day earlier. In this way, onion prices in Delhi increased by 25 percent on Friday. On the other hand, retail traders have started selling onions in Delhi-NCR for Rs 50-75 per kg. The arrival of onions in Delhi was 1,026 tonnes on Friday, Rajendra Sharma said that consumption of entire Delhi is around 3,000 tonnes daily, but the increase in prices has also affected the consumption and it has come down to 2,500 tonnes.
On the other hand, according to the rate of APMC, onion price in Lasalgaon was Rs 1,500-5,100 per quintal. Surprisingly, the yield of onion has been higher in the last crop year 2018-19 than in the previous year, yet the scarcity of onion remains. One trader explained the reason for this, saying that at the beginning of the season, exports are high, hence the stock is low. According to the third advance production estimate of commercial crops, onion production is 343.85 lakh tonnes in 2018-19, which is more than 232.82 lakh tonnes produced in the previous year.