Delhi polls: New government to come with cuts in potato, onion rates

NEW DELHI: The party that comes to power in Delhi will be greeted with a fall in food and vegetable prices. Both onion and potato rates are already showing a downward trend, which is expected to reduce further in the next couple of weeks.

The prices have started coming down with fresh produce flooding major mandis. Market analysts said while onion was now selling between Rs 40 and Rs 50 a kg, it may fall to Rs 20-30 by mid-January while potato would be available for less than Rs 15 a kg.

Comparison of retail prices of the two key commodities in Delhi in the past 15 days shows onion prices fell by Rs 13 per kg and potato prices fell by Rs 7. Potato prices will reduce further when supply from Punjab and Uttar Pradesh picks up.

“There will be huge supply . Now farmers in these two states are taking out fresh crop in small quantity. But we hope it won’t be as bad as last year when Punjab farmers preferred throwing their crops on roads rather than selling at low price,” said H P Sharma, deputy director (statistics) at National Horticultural Research and Development Foundation ( NDRF).

He added that prices of all other vegetables including cabbage, cauliflower and tomato will reduce further in the next one month because of fresh production.

Delhi BJP has announced to control prices within a month of coming to power, which experts say will happen automatically. “But it will obviously go in favour of the new government and be a feel good factor just before the next Lok Sabha election. It will help the party in power to consolidate its position,” said a horticulture expert.

However, the relief comes much later than what the incumbent government had expected . Usually onion prices moderate by second week of October and potato by November first week. But this year this prediction went haywire due to extended monsoon that delayed harvesting of fresh crops.