Market watchers said the quantity of fresh arrivals were not as much as expected and this was likely to further raise prices over the next one week. Onions were selling between Rs 60 and Rs 80 in other parts of the country, including Mumbai, Kolkata and Varanasi.
Delhi, which gets most of its supply from Alwar (Rajasthan) and Indore (Madhya Pradesh), seems to be face a more severe crisis. Although 400 tonnes of fresh onions arrived at Alwar Mandi on Monday, sources said this was below expectations. "We have got inputs that traders have bought standing crops from farmers. So, it's the traders who are deciding when to release the supply," said a senior government official who keeps track of vegetable prices.
The wholesale rate of onion climbed by Rs 5 per kg over the weekend to settle at a high of Rs 65 per kg on Monday. Retail prices recorded a corresponding jump, moving up from Rs 80 per kg on Sunday to Rs 90 per kg the next day. Onions were retailing between Rs 70 and Rs 90 in the city. In the beginning of July, a kg of onion in Delhi could be bought for Rs 40.
"The supply from Alwar has started coming in. On Monday, 1,200-1,300 bags of onion, weighing about 90 tonnes, arrived at the Azadpur wholesale market. Usually, by this time the supply from Rajasthan is much higher," said Surendra Sawhney, proprietor, Gujarat Onions Co.
The trend of onion arrivals at major mandis in the past 20 days shows a significant drop in most of the markets except Delhi, Mumbai, Pune and Hyderabad. At Lasalgaon, Asia's largest onion wholesale market, arrivals reduced by 1,000 quintal during this period and prices increased by Rs 1,000 per quintal.
"Prices are high because of the old stock getting finished. Old onions are selling at a high price though their quantity is less. These are bought for seeding. But these are also pushing up the modal price at some of the mandis," said Hari Prashad Sharma, deputy director (statistics) at National Horticulture Research and Development Foundation (NHRDF).
He said this year the production is expected to be 10-15% higher than last year and in the next fortnight prices will crash as fresh onion arrival increases significantly. "Hoarders will lose heavily," he warned.
Meanwhile, sources in the consumer affairs ministry said onion arrivals at mandis had fallen despite a good crop due to the extended festive season and heavy rain in many parts of the country. "Prices will remain high for the next 10-15 days till the time fresh crops from Andhra Pradesh, Maharashtra and Madhya Pradesh reach different states," said a source.
In what could come as a relief to Delhiites in the next few weeks, arrivals at Indore have increased almost five-fold in the past 20 days. On Monday the arrival was 27,900 quintals against 6,000 quintals on September 30. However, the wholesale price remained unchanged at Rs 3,000 per quintal.
Onion prices had skyrocketed to Rs 80 per kg across the country last month, forcing the Centre to impose a minimum export price to curb shipments. Imports have also taken place from Afghanistan by the private traders.
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