DF govt in tearing hurry to contain onion prices
Prices of the key commodity double in just two weeks; Oppn criticises ruling combine’s insensitive attitude
By Nidhi Sharma and Girish Kuber, TNN |
MUMBAI: Onions continue to scare politicians. As the price of this important commodity continues its upward march, the ruling combination is trying hard to contain any political fallout, while the Opposition is adding fuel to the fire. Though the prices of all other commodities are falling, onion is neutralising the positive sentiment.
In the retail market, onion prices have shot up almost 100% to Rs 30 per kg in the past two weeks. This obviously alerted political parties, ruling and opposition alike. In the Navi Mumbai wholesale market onion prices were ruling at Rs 180 per 10 kg on Monday, which have come down to 120-140 per 10 kg on Wednesday. But this doesn’t seem to reflect in the retail market.
However, for many, there’s nothing unusual about this price rise. Rajendra Raskar, president of the Navi Mumbai-based Kanda Batata Artiya Vyapari Sangh, said that prices went up because of good demand in east and north India. “It is normal for the prices to shoot up when there is good demand and a supply crunch,” Mr Raskar said. Once fresh supply of onion begins after rains, the prices would subside, he said, claiming that the downward journey has already begun. He said the prices has come down to Rs 25 per kg from Rs 30 per kg.
This, however, hasn’t dampened the political parties’ spirit. The Shiv Sena-BJP have criticised the government for its “insensitive attitude” towards the price rise, while the head of the Congress’ own commodity cell, Kanhaiyalal Gidwani, demanded government intervention to bring the prices down. Coming in the wake of the political turmoil in Delhi, the issue of rising onion prices has affected the overall sentiment, a government official dealing with essential commodities, said. This, despite “prices of every other commodity going down for quite some time”, he said.
Market sources confirm the trend. Edible oil prices are gradually coming down in the domestic market for the past one month. Prices of ground nut oil have come down to Rs 70,500 per tonne from Rs 75,000 per tonne, while that of refined soy oil has gone down to Rs 47,000 from Rs 48,800. Mustard oil prices are down to Rs 49,000 per tonne from 50,700 per tonne.
“Good rains and reports of a 7% increase in the oilseed acreage have brought down edible oil prices, with a little help from international factors, including good palm oil stocks,” the executive director of Solvent Extractors Association, BV Mehta said.
Even the prices of grains have been steady. President of the Navi Mumbai-based Grain, Rice, Oil Seeds Merchants Association, Sharadkumar Maru said good rains have raised the prospects of production and prices of grains are holding steady. The prices of pulses such as moong and urad are also expected to go down with estimated good crop and the beginning of arrivals from Karnataka and Maharashtra.
In fact, the prices of other vegetables and fruits too show similar trends. Vijay Dhobal of Fruit Market Association said that price movements depend on arrival and demand. “Presently we are getting apples from Himachal and the prices are strong. Once the supply gets into full flow, the prices will come down,” Mr Dhobal said.
In the retail market, onion prices have shot up almost 100% to Rs 30 per kg in the past two weeks. This obviously alerted political parties, ruling and opposition alike. In the Navi Mumbai wholesale market onion prices were ruling at Rs 180 per 10 kg on Monday, which have come down to 120-140 per 10 kg on Wednesday. But this doesn’t seem to reflect in the retail market.
However, for many, there’s nothing unusual about this price rise. Rajendra Raskar, president of the Navi Mumbai-based Kanda Batata Artiya Vyapari Sangh, said that prices went up because of good demand in east and north India. “It is normal for the prices to shoot up when there is good demand and a supply crunch,” Mr Raskar said. Once fresh supply of onion begins after rains, the prices would subside, he said, claiming that the downward journey has already begun. He said the prices has come down to Rs 25 per kg from Rs 30 per kg.
This, however, hasn’t dampened the political parties’ spirit. The Shiv Sena-BJP have criticised the government for its “insensitive attitude” towards the price rise, while the head of the Congress’ own commodity cell, Kanhaiyalal Gidwani, demanded government intervention to bring the prices down. Coming in the wake of the political turmoil in Delhi, the issue of rising onion prices has affected the overall sentiment, a government official dealing with essential commodities, said. This, despite “prices of every other commodity going down for quite some time”, he said.
Market sources confirm the trend. Edible oil prices are gradually coming down in the domestic market for the past one month. Prices of ground nut oil have come down to Rs 70,500 per tonne from Rs 75,000 per tonne, while that of refined soy oil has gone down to Rs 47,000 from Rs 48,800. Mustard oil prices are down to Rs 49,000 per tonne from 50,700 per tonne.
“Good rains and reports of a 7% increase in the oilseed acreage have brought down edible oil prices, with a little help from international factors, including good palm oil stocks,” the executive director of Solvent Extractors Association, BV Mehta said.
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Even the prices of grains have been steady. President of the Navi Mumbai-based Grain, Rice, Oil Seeds Merchants Association, Sharadkumar Maru said good rains have raised the prospects of production and prices of grains are holding steady. The prices of pulses such as moong and urad are also expected to go down with estimated good crop and the beginning of arrivals from Karnataka and Maharashtra.
In fact, the prices of other vegetables and fruits too show similar trends. Vijay Dhobal of Fruit Market Association said that price movements depend on arrival and demand. “Presently we are getting apples from Himachal and the prices are strong. Once the supply gets into full flow, the prices will come down,” Mr Dhobal said.
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