Onion prices have peaked to all time high of about Rs 70-80 per kg in Delhi and other parts of the country, despite several measures taken by the central government to boost supply. The price hike is mainly reported due to supply disruption amid excess monsoon rains in the major growing belts. Centre is also mulling to impose stock holding limits on onion traders.
The major onion growing regions especially Maharasthra, Karnataka, Andhra Pradesh, Gujarat, eastern Rajasthan and western Madhya Pradesh have faced excessive monsoon rainfalls in the last two days. Besides, there is enough supply of stored onion of the previous year's crop in the country, but difficult transportation amid rain affected the supplies. The Centre has taken necessary measures to arrest the prices of onion in Delhi and other parts of the country.
Centre has a buffer stock of about 56,000 tonnes of onion, of which 16,000 tonnes has been offloaded so far. In Delhi, 200 tonnes a day is being offloaded. Besides, the Centre has discouraged export of onion by increasing the minimum export price and withdrawing incentives. It is also cracking down on blackmarketeers. Besides rains, prices are under pressure on likely fall in kharif production of this year owing to less planted area under onion on account of excess rains.