Onion prices are expected to drop soon. The first consignment of 790 tonnes of imported onions has reached Mumbai. Some part of it is being sent to Delhi and Andhra Pradesh. A senior officer of the Ministry of Consumer Affairs said on Monday that the cost of imported onions at the port is hovering around Rs 57-60 per kg. He said that by the end of this month, about 12 thousand tonnes of imported onions will be reached. <! –
Onion is being imported by public sector company MMTC. The company has so far awarded 49,500 tonnes of onion import contracts. These days the average price of onion in big cities is Rs 100 per kg. But, in some parts, onion is being sold up to Rs 160 per kg.
The official said, 'Two consignments of 290 tonnes and 500 tonnes have reached Mumbai. We are providing it at an import cost of Rs 57-60 per kg. He told that the governments of Delhi and Andhra Pradesh have already placed orders and they have started picking up the goods.
The official said that onions are being imported from Turkey, Egypt and Afghanistan. Right now some consignments are on the way, which should reach the supply position. Earlier, in the year 2015-16, 1,987 tonnes of onions were imported. During that time, onion also became very expensive.
Reason for price rise
Onion production is expected to decline by about 25 per cent in the 2019-20 kharif season (July-June) compared to the previous year. The late onset of monsoon rains and excess rain in major producing states were the two main reasons.
Still not enough
During the last few weeks, the government took several steps to make onions available at cheaper rates, but they did not prove to be good. Onion exports are already banned. Apart from this, stock limit has also been imposed on this commodity and onion price of buffer stock is being released.
Possible by January
Traders and experts believe that onion will continue to grow until next month. By then, the arrival of late kharif crop will start in the mandis, so prices will start falling.