Government keeping close watch on onion prices

NEW DELHI: With onion prices showing a marginal rise in some parts, the new government is closely watching the trend and is likely to restrict exports if the vegetable gets abnormally costlier.

Onions are costlier by Rs 5/kg in retail markets in most cities as compared to the last year prices. The vegetable is selling at Rs 21/kg in Delhi, Rs 22/kg in Kolkata and 27/kg in Mumbai, as per official data.

When asked about onion prices, Consumer Affairs Secretary Keshav Desiraju told PTI: "The retail price at this point of time has increased marginally as compared to last year level. However, there is no abnormal rise in prices and there is no serious concern at this point of time."

The Department is "keeping a close watch on the price trend" and has "flagged concerns to both the Agriculture and Commerce Ministries" to take steps to control if any abnormal price rise in the coming days, he said.

The retail price is ruling at Rs 21/kg at present in Delhi as compared to Rs 17/kg in the year-ago period.

Asked if prices are rising due to production shortfall, he said: "There is no serious production glitch this year. There was hailstorm in the key growing state Maharashtra few months ago, but there was not much impact."

Stating that the current price trend is no different from that in the last few years, Desiraju said: "Steps need to be taken, if prices go up abnormally. We have an option of either importing or restricting exports."

"There is no minimum export price (MEP) on onion right now. A call on re-imposing MEP will be taken by the Cabinet Committee on Prices soon." he said.

In September last year, retail prices had shot to up Rs 100 per kg in many parts of the country. To rein in prices, the government had imposed MEP on onion and the minimum export price was raised several times to curb outbound shipments and boost domestic supplies. The government even imported onion.

With domestic supplies improving and wholesale prices crashing, the Centre had later done away with the MEP.

In the 2013-14, total onion exports fell by over 25 per cent to 1.35 million tonnes as against 1.82 million tonnes in the previous year.

According to the government research body National Horticultural Research and Development Foundation ( NHRDF), the country's total onion production is estimated to be higher by 15 per cent at 19.29 million tonnes this year (July-June), from Rs 16.81 million tonnes a year ago.

In India, the world's second largest onion producer after China, onion is grown in three seasons -- kharif (summer), late kharif and rabi (winter).