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Monday, September 21, 1998

Retail onion prices skyrocket, touch all-time high in West Bengal 

Suman Layak  
Onion prices have skyrocketed in West Bengal with the retail prices touching an all time high of Rs 25 per kilogram and the whole sale prices at Rs 900/950 per 40 kgs.

Onion traders in the state said the tight market scenario in south India and Maharashtra has led to the unprecedented rise in prices. Supplies from the areas growing onion are also not steady, said one trader. At this time of the year, West Bengal is totally dependant on onion coming in from other states. The state has only one crop of onions every year, the Sukhsagar, which comes to the market in March-April. Another variety, called deshi, arrives in the market in February. At present, supplies of onion to West Bengal is coming from Bangalore and Nasik. Meanwhile, the minister for agricultural marketing Biran Moitra is busy supervising flood relief in Malda, his home district, and was not available for comment. Few weeks back Moitra had held discussions with union minister SS Barnala regarding possible subsidies to bring down onion price.According to Moitra, Barnala had assured him that the central government would support the effort through the National Agriculture Cooperative Marketing Federation. Earlier this year, the prices had reached an all time high during the winter months before the sukhsagar crop came into the market. At the peak during early January, prices at the Calcutta wholesale market were around Rs 700 per 40 kgs.

The Pol Kanda crop of onions starts arriving in West Bengal after Diwali and the state is virtually waiting for the crop to start arriving. Starting from May-June the Sukhsagar crop is exhausted and the market is ruled by the Unal Kanda crop from Nasik, which continues till September-October.

On an upward spiral in Chennai

Our Bureau

Onion prices in Chennai are on an upward spiral for the past week. The prices began a gradual increase from Sunday last from Rs 14-Rs 16 per kg on the retail market to Rs 24 per kg till Wednesday.

However, the prices have shot up to touch Rs 32 per kg in some areas,while the minimum price is pegged at Rs 29 per kg.

In the Koyambedu wholesale market, onions have become the costliest commodity trading at a wholesale price of Rs 22 to Rs 24 per kg. The traders in the market predict higher prices till the middle of next week.

The sudden increase in the price of onions has been attributed to an acute shortage of supply. The supply from northern markets have stopped on account of premature heavy rainfall, while the supply from neighbouring states like Karnataka, Maharashtra and Andhra Pradesh have also dwindled.

It is said that Kurnool in Andhra Pradesh, which is the main source of onion supply to the Tamil Nadu markets, saw a crop failure this year and hence could not meet the demands of the markets. On the other hand, Maharashtra, which also cultivates onions on a large scale, is said to have a huge accumulated stock lying rotting in the state, following hitches in transport due to heavy rains. The actual supply situation can be gauged only next week, say thetraders.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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