Onions to hit a century today

Don't be shocked if your vendor asks for Rs 100 for a kilo of onions today. It's official now this is the highest it has ever cost

After the jolts that onion prices gave you every day over the past week, you might want to ready yourself for a complete burnout now, because the upswing refuses to take a downturn.



On Monday, Agriculture Produce Market Committee (APMC) officials revealed that onion prices have shot up by another Rs 10 for every kg, the highest leap over the past week.

Don't drop your jaw just yet.
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Experts say that the hike has already buoyed the current wholesale rate of onions up to Rs 60-65/kg, which when the markets open today, will have sent the once-humble bulb's retail prices to a never-before Rs 100 per kg.

Getting dizzy? There's more. As the week opened with a jump in onion prices that outstripped all previous ones, traders at APMC, Vashi, said that the stock available in the market is limited and, in the coming days, there will be no onions available.

APMC Director Ashok Walung said, "Rs 60/kg is the highest that onion rates have ever risen in the wholesale market.

The Rs 10 hike on Monday is the biggest hike all week, likely to cost the consumer Rs 100 for a kg in the retail market.

In the last 100 years, never has there been a time when onions cost so much. One could say this is a world record of sorts."

And the city will feel the dearth like never before, traders say. Of its daily requirement of 700 tonnes of onions, only 400 tonnes can be supplied to Mumbai.

Because the APMC, which is being delivered not more than 800 tonnes of onions from farmers, has too many mouths to feed Mumbai, Thane, as well as Navi Mumbai, all are dependent on the APMC right now.

A trader who did not wish to be named said that all within 48 hours, the prices shot up abruptly. "On Saturday, a quintal of onions was going for Rs 4,200 at the most. As of Monday, it is Rs 6,000," he said (see box).

No stocks in trade

The reasons for the crop's failure are sundry, as are the woes and the woebegone it has left in its wake. By the time the new year ushers in, there will be nothing left of the popular crop to consume, farmers say.

Panditrao Patil, an onion trader, sat sombre outside his shop, devoid of customers and ware.
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His suppliers from Nashik, like most other farmers, had lost up to 80 per cent of their onion produce because of untimely rains and mists in November.

"Onion rates in Ahmednagar are about Rs 70-80 per kg. So most farmers are selling their produce there," he said. "There is no stock here.



Good onions from the last crop are going for Rs 40-60 for a kg right now. The new crop has been badly damaged."

Ashok Karpe, another trader, said, "Maharastra's crop has suffered severely. The stock will not last beyond 10 days."

The APMC director corroborates the same. "More than 50 per cent of the crop in Maharastra has been destroyed.

Nashik and Ahmednagar usually produce the highest amount of onions, but this time there was just too much rain in Nashik," Walung said.

Moreover, farmers said that land that used to yield 100 quintals now yields 20 quintals. Madan Pandit Khairnar, a farmer from Chambud, said, "One acre used to yield 100 quintals but this time we got only about 20."

Anand Sonawane, a farmer from the same region, said, "The new crop is growing very slowly and the quality is not good either. The current stock is from the last crop.
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There are no onions anymore." In fact, even the refuse the crop produced was worthless. "Waste from the crop is usually used as feed for animals.
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This year, it is so bad that even cows are refusing to eat it," he added.

No kidding

The APMC Director warned that the predictions are not to be dismissed as a wailing of the Cassandras. It is for real.

"After Christmas, there will be a hike in the prices. The reported Rs 100/kg is not just a figure, it will be a reality soon," Walung said. "From five-star hotels to vada pav sellers on the street, all require onions.
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These prices are beyond belief. Sadly, we can't put dry fruits instead of onions in food!" he joked mirthlessly.
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Asked if importing onions from other states is an option, he said, "Maharashtra is the biggest producer of onions in the country. If we don't have onions, no one else will."

After a National Agricultural Cooperative Marketing Federation meeting in New Delhi last night, Walung confirmed that the Union government has suspended all onion exports until January 15 next year.

Voices

The enterprising Mumbaikar has come up with some creative solutions to find a way around the price hike. I think it's just a short phase which will pass. We should try and make do with alternatives instead of cribbing about the high prices. For example, the ready-made instant pastes used to flavour food can be used instead of onions. They are cheaper and more readily available at this point in time.u00a0
Vinita Sharma, teacher, Nerul

I make coconut-based dishes for my family instead of onion-based ones. Buying onions is expensive around this time, so I just work around it and make dishes that can do without onions."
Sarla Sundaran, consultant, Vashi

Onion crisis 2.0
More than a decade ago, in what was dubbed the 1998 onion crisis, prices went up to Rs 48/kg in Mumbai. The inflation cost the then-ruling BJP its popularity and its government in three states to the Congress when the country went to polls.

India
Is the second largest producer of onions in the world, after China

Maharashtra
Is the leading producer of onions in the country and accounts for 30 per cent of the output