NEW DELHI — Rising onion prices can bring down governments, and both the Bharatiya Janata Party and the Congress have experienced that the hard way since Delhi gained partial statehood.
Now, Arvind Kejriwal's government is stepping up to control onion prices that have risen to about 80 per kilogram, a two-year high. Onions are commonly used in cooking, and high prices affect a large section of the population. It was selling at Rs 20 per kilo just a couple of weeks ago.
Government teams will monitor stocks of onion, to control hoarding in wholesale markets by traders who profit from higher prices. Each team consists of a food and civil supplies officer and an Inspector besides an officer from Delhi Agriculture and Marketing Board. The Food and Civil Supplies Department was continuously monitoring the supply and prices of onions in the national capital, the government said.
Arrival of fresh stocks from other states normally eases supply constraints and puts a lid on the prices, but this time that might not happen because onion prices have shot up everywhere, traders say.
Rajender Sharma, a committee member of the Azadpur mandi, said inconsistent rainfall had led to low production, which sent prices soaring, and that this trend will continue until September. At Lasalgaon, Nashik, the largest wholesale market for onions in India, prices have touched a two-year high of Rs 4,900 per quintal, a rise of 65 percent in just one month. Retail prices will be higher, except for government's fair price shops which might continue to sell at Rs 30 per kilo.
Prices in Delhi vary with locality. In south Delhi's Saket area, onions are selling at 80 for a kilo. In Shalimar Bagh and Ramesh Nagar, the price is Rs 70 and Rs 60 respectively for the same quantity. On average, the selling price has touched Rs 65 per kilo.
Prices might continue to rise because of dry spells in states such as Maharashtra, Karnataka and Madhya Pradesh, which produce the bulk of India's onions. Prices in Mumbai, Pune and Nagpur might breach the Rs 100 per kilo level, making it unaffordable for most of India's population.
The union government has decided to import 10,000 metric tonnes of onions through a global tender to bring prices down, and is likely to buy from producers in China and Pakistan.
In 1998, the ruling BJP government in Delhi lost elections after onion prices rose and the opposition Congress made it a big issue. In 2013, nationwide rise in onion prices became an issue with which the BJP attacked the Congress, which was then in power at the centre.
(With agency inputs)
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Now, Arvind Kejriwal's government is stepping up to control onion prices that have risen to about 80 per kilogram, a two-year high. Onions are commonly used in cooking, and high prices affect a large section of the population. It was selling at Rs 20 per kilo just a couple of weeks ago.
Government teams will monitor stocks of onion, to control hoarding in wholesale markets by traders who profit from higher prices. Each team consists of a food and civil supplies officer and an Inspector besides an officer from Delhi Agriculture and Marketing Board. The Food and Civil Supplies Department was continuously monitoring the supply and prices of onions in the national capital, the government said.
Arrival of fresh stocks from other states normally eases supply constraints and puts a lid on the prices, but this time that might not happen because onion prices have shot up everywhere, traders say.
Rajender Sharma, a committee member of the Azadpur mandi, said inconsistent rainfall had led to low production, which sent prices soaring, and that this trend will continue until September. At Lasalgaon, Nashik, the largest wholesale market for onions in India, prices have touched a two-year high of Rs 4,900 per quintal, a rise of 65 percent in just one month. Retail prices will be higher, except for government's fair price shops which might continue to sell at Rs 30 per kilo.
Prices in Delhi vary with locality. In south Delhi's Saket area, onions are selling at 80 for a kilo. In Shalimar Bagh and Ramesh Nagar, the price is Rs 70 and Rs 60 respectively for the same quantity. On average, the selling price has touched Rs 65 per kilo.
Prices might continue to rise because of dry spells in states such as Maharashtra, Karnataka and Madhya Pradesh, which produce the bulk of India's onions. Prices in Mumbai, Pune and Nagpur might breach the Rs 100 per kilo level, making it unaffordable for most of India's population.
The union government has decided to import 10,000 metric tonnes of onions through a global tender to bring prices down, and is likely to buy from producers in China and Pakistan.
In 1998, the ruling BJP government in Delhi lost elections after onion prices rose and the opposition Congress made it a big issue. In 2013, nationwide rise in onion prices became an issue with which the BJP attacked the Congress, which was then in power at the centre.
(With agency inputs)
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