Onion prices still rule high at Rs 70 a kg in Delhi

Retail prices of onion in the national capital remained high on Monday, at Rs 70 a kg, due to lower supplies in the wholesale market.

Traders said the wholesale prices of the kitchen staple are ruling firm at Rs 45-50 per kg as supplies from producing regions have been lower in the past couple of days.

"Supply continues to be below normal, due to which prices are high," Onion Merchant Traders Association President Surendra Budhiraj said. At present, about 40-50 trucks are entering the market as against 60-70 trucks earlier, he added.

Street vendors charge anything between Rs 55 and Rs 70 for one kg of onion in Delhi, depending on the locality and quality of the bulb, a key ingredient in most food items.

The vegetable's prices recently touched Rs 80 a kg.

In a bid to ease high onion prices - a politically sensitive issue - cooperative major Nafed has been asked to import onions to boost domestic supplies.

Organised retailer Mother Dairy is selling onions at around Rs 50 per kg through its 400 Safal outlets in the NCR. Nafed is offering a price of Rs 40 per kg through its 5 outlets and mobile vans.

According to National Horticulture Research and Development Foundation (NHRDF) data, at Lasalgaon in Nashik district of Maharashtra, a major producing region, prices have risen by Rs 3 per kg to Rs 43 per kg on Monday, and supplies have come down to 3750 qunitals from 4,249 quintals last week.

"Prices will remain high as farmers and traders are going to keep supplies under stress to maintain high level of onion prices," a senior official of NHRDF said.