Experts warn of Rs 100 rupee onion hit
- 5 years ago
Onion prices are poised to jump to Rs 100 per kg by October while potato rates may fall briefly but rise again despite government measures to boost supply by restricting exports, as hailstorms and unseasonal rain in the past, along with the weak start of the monsoon season has created scarcity and strong inflationary pressures.
Onions, currently retailing for Rs 20-30 per kg in different parts of the country, are particularly vulnerable despite the imposition of a minimum export price (MEP) and official estimates that 2013-14 output would rise 14% to 192 lakh tonnes. This is because the rabi crop in Maharashtra and Madhya Pradesh has been extensively damaged by adverse weather, traders say, although there is no firm estimate of the loss. Further, the price of seeds has jumped 400% compared to the previous year as there is a big scarcity in the market. This will reduce the area under cultivation, traders said.
"The price can rise to Rs 100 per kg around October," said a leading industry official, who did not want to be quoted because of the political sensitivity of onion prices. Leading traders and an official of a government body agreed with the assessment.
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Onions, currently retailing for Rs 20-30 per kg in different parts of the country, are particularly vulnerable despite the imposition of a minimum export price (MEP) and official estimates that 2013-14 output would rise 14% to 192 lakh tonnes. This is because the rabi crop in Maharashtra and Madhya Pradesh has been extensively damaged by adverse weather, traders say, although there is no firm estimate of the loss. Further, the price of seeds has jumped 400% compared to the previous year as there is a big scarcity in the market. This will reduce the area under cultivation, traders said.
"The price can rise to Rs 100 per kg around October," said a leading industry official, who did not want to be quoted because of the political sensitivity of onion prices. Leading traders and an official of a government body agreed with the assessment.
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