Onion prices to ease on arrival of kharif crops: Govt

Onion prices will moderate as arrival of kharif crops will increase significantly in one week, the government today said.

Onion prices have increased sharply to around Rs 50 per kg in the national capital from Rs 20 per kg few weeks ago.

The Department of Consumer Affairs today reviewed the price and availability situation of onion with all the concerned stakeholders.

The agriculture ministry as well as the trade association informed that kharif crop of onion has started arriving in markets in producing areas like Andhra Pradesh, Karnataka, Maharashtra, Gujarat, Madhya Pradesh and Rajasthan.

"Prices in areas producing kharif onions have already started moderating," an official statement said.

It was also informed in the meeting that the recent rains have not affected the standing crop of onions.

The supply of kharif onion from producing regions has also started arriving in Delhi.

"Arrivals of Kharif crop is expected to increase significantly within a week. This would improve availability in consuming areas like Delhi as well, thereby, helping moderate prices," the statement said.

Till kharif arrivals pick up, trade association informed that there is enough onion stock available from the Rabi crop to meet the domestic demand.

"Department advised trade associations to be in readiness to import and supply onions in case prices do not moderate as expected because of unscrupulous activities. Such imports will be facilitated," the statement said.

To curb rise in onion prices, the government has recently extended by two months till December the ban on holding of stock beyond a prescribed limit.

Retail onion prices are ruling at around Rs 50 per kg in the national capital. In other metro cities, rates are ruling in the range of Rs 30-40 per kg, as per the official data.

The agriculture ministry has projected 5.8 per cent fall in onion output at 197.13 lakh tonnes in 2016-17 crop year (July-June), as against actual output of 209.31 lakh tonnes last year.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)

TAGS:

Economy