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.
The onion price in Bangalore has gone up by nearly Rs. 10 a kilo in the wholesale market over the last fortnight and is likely to increase further, according to onion traders at the Agriculture Produce Marketing Committee (APMC). The retail price of good quality onion, which was in the range of Rs. 10 to Rs. 15 a kilo, is now above Rs. 25.
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.
