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LATEST NEWS UPDATES | After minor dip, onion prices on the rise again -Dipak Kumar Dash

After minor dip, onion prices on the rise again -Dipak Kumar Dash

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published Published on Oct 15, 2013   modified Modified on Oct 15, 2013
-The Times of India


NEW DELHI: Sixty is the new normal for onion prices in most cities after belying government expectation that prices would moderate in the first half of October.

The end of Navratra, Eid-ul-Adha on Wednesday and insistent rain in many parts of the country has pushed prices to Rs 70 a kg in many cities, including Delhi.

Retail price of onion has remained Rs 60 per kg in north Indian cities such as Varanasi, Agra, Dehradun and Lucknow. In Mumbai, the price is hovering around Rs 60 per kg. "The price was down at Rs 50 during Navratra. On Monday, it increased to Rs 60-65 and on Tuesday-Wednesday, it will touch Rs 70 because of high demand," said a retailer in east Delhi.

Consumer affairs secretary Pankaj Agrawal said there was little hope of prices moderating soon since the fresh produce is yet to reach markets due to transportation issues.

According to a government report on Monday, onion prices pushed up inflation as wholesale prices rose by a 322% in September against 244% increase in August.. Though officials still claim that prices will fall by the end of this month, there is hardly any indication of the situation improving at least in the next one week.

The bigger worry for government agencies is that farmers in major crop growing states such as Maharashtra and Madhya Pradesh have developed their own storage capacity. Cracking down on them is politically impossible in the poll season. "They have been storing onions to sell at a time when they get the best price," said a government official.

On Monday, the wholesale price increased by a few hundred rupees over Friday's rates. It was up Rs 62 per quintal in Delhi, Rs 700 in Rajkot and Rs 500 in Jaipur.


The Times of India, 15 October, 2013, http://timesofindia.indiatimes.com/india/After-minor-dip-onion-prices-on-the-rise-again/articleshow/24173912.cms


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