Onion prices up by 80% within a week

Indore: Some onion traders have apparently created an ‘artificial crisis’ and reaping extra profits with prices skyrocketing by 80% in just a week. Devi Ahilyabai Holker Harisabzi Vayapari and Commission agent Association president Mohan Singh Goud said, “Onion supplies have gone up as traders are booking profits at higher prices. It looks like an artificial trend in market, where prices are moving up despite rising supplies.”
There has been no scarcity of supplies in mandis.In fact, daily arrival of onions has jumped to around 60,000 bags (1 bag weighs 55 kg) as against 40,000 bags earlier. But, cashing in on the market sentiments of concerns regarding quality due to recent rainfall, some traders are releasing stocks and charging extra. Besides, minor delay in transportation is also being used as an excuse to charge more, making eventually the aam admi teary-eyed while buying onions. Following suit, garlic and potato process have also jumped by over 50 per cent in wholesale Choithram market. Experts said delay in onset of monsoon is also seen pushing back fresh harvest of onion in Madhya Pradesh. Maharashtra, Madhya Pradesh and Karnataka are top onion growing states contributing to over half of country’s output.
Rising onion prices are known to have may toppled governments in past by triggering farmer protests. On the trend gaining momentum, Om Prakash Rajore, an onion trader at Choithram mandi said, “Onion prices have jumped sharply in just a week. There is no scarcity of supplies in mandi but recent rainfall in the country has raised worries about quality while demand has also gone up.”
Traders said sudden spike in prices look artificial created by hoarders to cash in on rains and transportation delays. They said to take advantage of rise in prices, farmers and traders have increased supplies in market but despite that, prices are ‘mysteriously’ moving up.
Traders however said most of the supplies entering market are from stocks and limited supply is coming from farmers due to heavy rainfall in the region and in most parts of the country.