Onion prices are likely to fall in the next 7-10 days with the arrival of
new crops , says a top government official.
"The steps the
government has taken have helped in drastic reduction in onion prices. New arrival will come,
prices will come down in next 7-10 days," Agriculture Secretary P K Basu told reporters in the national capital on the sidelines of a Confederation of Indian Industry (CII) event on cold chain management.
Onion prices have soared to Rs 70-85 per kg in Delhi and other major cities, from Rs 35-40 per kg last week, due to damage of onion crops because of rains in southern and western states of the country, coupled with hoarding.
"Easing of prices has already started. Prices have come down already in all markets, not only in Delhi," the secretary said.
Asked whether the government plans to import onions, Basu said: "The private sector is planning (to import). We have not taken any decision."
Basu's remarks came a day after Food and Agriculture Minister Sharad Pawar said prices would come down in the next 2-3 weeks with fresh arrivals coming from Gujarat, Uttar Pradesh and Madhya Pradesh.
In order to rein in the skyrocketing onion prices, the government has suspended exports and abolished import duty. It has also more than doubled the minimum export price (MEP) of the crop to $1,200 per tonne from $525 per tonne for the contracts already approved by the regulating agency NAFED.
Abolition of import duty would help the private traders, who have started importing onions from Pakistan since last Monday.
Till Tuesday, about 50 truck loads (5 to 15 tonne per truck) of onion have arrived from the neighbouring country at Rs 18-20 per kg.
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