The rise and rise of onion prices

With onion prices touching the predicted Rs 100/kg mark in some city markets, MiD DAY set out to find whether tears were welling up in consumers' eyes

MiD DAY's report on onion prices touching the 100-rupee mark proved true with the precious commodity retailing at that price in Bandra and Byculla yesterday.

So, even as Agriculture Minister Sharad Pawar announced a ban on onion exports till January 15, traders began importing it from Pakistan to fill the gap in supply and speculation was rife about the impact the issue would have on the scam-rocked government, MiD DAY went to various city markets to gauge consumer sentiment.

Here's what we found:



Most of the market's onion stock comes from Dadar's wholesale market and prices here were among the highest in the city yesterday. Large, dry onions of the old crop were selling for Rs 100 per kg and so were the specially ordered white onions. Wet onions (new crop) were selling for Rs 80 per kg while baby onions were selling for Rs 60.

Keshav, an employee of a vegetable supplier, said, "Customers are definitely cutting down on onion consumption. We have seen sales go down by nearly 50 per cent. The abnormally high prices have shocked everyone."

Sushma Jain, a local resident said, "Although I have cut down considerably on the quantity of onions I purchase on a regular basis, I cannot cut it out from my shopping list altogether. It is a crucial ingredient and cooking without it is just not possible."



Large wet onions were selling for Rs 70 per kg here, medium-sized ones were going at Rs 65 and small-sized ones were being sold for Rs 60 per kg.

"Rates have increased drastically from yesterday. The government's move of banning exports came just in the nick of time or the prices would have shot to Rs 150 per kg," said Sandeep, a shopkeeper.



Breach Candy, one of the most hoity-toity areas in the city, was also one of the most affordable places to buy onions in yesterday. Medium-sized, wet onions were selling for Rs 64 per kg.

Arjun Patel, a shop owner said, "I bought around 40 kg of onions this morning and have managed to sell almost 35 already. There is a shortage of the large, dry onions in the market and so I couldn't stock any."



Large, dry onions were selling for Rs 100 per kg while medium-sized wet onions were selling for close to
Rs 80. "The stock is expensive as it is and our problems are compounded by an unprecedented amount of rotten onions in the stock," said Laxman Bandal, a shop owner. Vinod Shrinath, another shopkeeper, said, "Prices have reached record-setting levels and will skyrocket even more if something is not done about the situation soon."



The onion stock at a popular retail chain was medium-sized and shabby looking and some of the onions had even begun to sprout. Vinod Sawant, the store's manager, said, "The onions are quite small and are not of good quality at all. Good quality onions are not available in the market."

Sawant claimed they were buying onions at Rs 60 per kg from the market but were selling them for Rs 50. We spotted Mina Shah, a housewife, picking up the onions, making a face and putting them back. "These onions will last for only two to three days at home," she said.

Rain to blame

Farmers in the state have cited many reasons for the onion crop's failure from untimely rain to dew to land infertility.

Farmers around Nashik say the November rain and excessive dew this winter caused them to lose up to 80 per cent of their crop.

Others say that since rates in other districts like Ahmednagar are more competitive, farmers prefer not selling the scant output in Mumbai.

Still others complained that an acre of land that used to yield 100 quintals yielded only 20 quintals this year.

onion index: rates across city markets

Rs 60
Juhu

Rs 80
Dadar

Rs 64
Breach candy

Rs 100
Bandra

Rs 100
Byculla