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Onion prices will moderate after 3 weeks: Pawar

Onion prices will moderate after 3 weeks: Pawar

With wholesale rates at Nashik in Maharashtra crossing over Rs 70, there are fears the retail selling price in Delhi and elsewhere may edge towards Rs 100 a kg.

Even as it faces the heat of skyrocketing prices of onion which is ruling between Rs 70-80 a kg, the government on Tuesday said any respite to the commoner from the high rates may take 2-3 weeks.

The Centre, however, ruled out any immediate plans to import onions to arrest prices even though small consignments arrived from Pakistan.

With wholesale rates at the biggest producing centre, Nashik in Maharashtra crossing over Rs 70, there are fears that the retail selling price in Delhi and elsewhere may edge towards Rs 100 a kg.

"Onion prices will remain high for the next 2-3 weeks and the situation is likely to improve only after two-three weeks," Agriculture Minister Sharad Pawar told reporters in Delhi.

The prices of onions have soared to Rs 60-70 per kg in retail markets in Delhi and many other important cities of the country from Rs 35-40 just a few days ago.

"Because of heavy rains in Nashik area substantial quantity of onion has been damaged. Our expectation is that with the arrival from Uttar Pradesh, Gujarat and Madhya Pradesh in the next 2-3 weeks, prices will come down," Pawar said, when asked about the reasons for sharp rise in prices.

Onion prices in various Agriculture Produce Market Committees (APMCs) in Nashik, the main trading centre for the bulb, have soared to a high of Rs 7,100 per quintal.

This was due to shortfall in production following untimely rains in the growing areas of Maharashtra in November.

Commerce and Industry Minister Anand Sharma as well as Nafed Managing Director Sanjeev Chopra had on Monday attributed the sudden rise in onion prices to hoarding and speculations.

Asked whether government will import onion to boost domestic supply, Pawar said: "As of today there is no proposal to import".

Meanwhile, some traders in north India have started importing onions from neighbouring country Pakistan.

As many as 13 truck loads (5 to 15 tonne per truck) of onion have arrived from Pakistan, a senior official of Customs department in Amritsar had said on Monday.

The landed cost of onion from Pakistan stood at Rs 18-20 per kg.

Pawar highlighted the steps taken by the government to control prices - suspension of exports till January 15 and more than doubling minimum export price of onion to $1,200 per tonne from $525 per tonne.

"Ban on onion exports should help reduce the prices," he added.

Published on: Dec 21, 2010, 3:15 PM IST
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