In big move, government to target onion prices, rates to fall soon

Government is expected to take another big step to ensure onion prices fall soon. It has been reported that the ban on onion exports may be extended until February because of high domestic prices after the harvest of summer-sown crops. The ban on exports will keep prices elevated in Asia and require importers in Nepal, Bangladesh, and Sri Lanka to find other sources to fulfill their demand - they were being supplied by India so far. This will help in pulling down prices of onions in domestic markets here.

Besides easing norms for import, the government has taken several measures including a ban on exports, stock limits on traders and sale of the commodity stored as a buffer, at a subsidized rate. Onion prices came under pressure due to a 30-40 percent estimated to fall in the Kharif (summer) output this year on account of floods and drought.

Retail onion prices had soared to Rs 100/kg a week back in the national capital. However, after various government measures, the rates are at around Rs 60/kg in Delhi as well as other consuming areas of the country.

Rajendra Sharma, General Secretary, Onion and Potato Merchants Association (Azadpur Mandi) told Zee Business, ''As of now the export ban will not likely to impact the onion prices. The extreme rains and unstable weather conditions majorly impact onion output in the country. Though the ban on exports will help in pulling down the prices for this month at least the prices will not be affected. The government should declare the MSP for onions just like wheat, grains and other necessary commodities. This would increase the supply in case of less production, eventually not leading to high prices in the markets.''

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Meanwhile, the private traders have also placed orders for importing onions and at least 1,000 tonnes are expected by month-end. This will help in easing the retail prices which are still hovering around Rs 60/kg.