Growing consumer concern over spiralling onion prices prompted Prime Minister Manmohan Singh to step in on Tuesday and ask the concerned ministries to take the steps necessary for reining in their prices. He has also directed that onion prices be monitored on a daily basis.
The PM’s intervention came on a day when the government came under sharp attack from the Opposition parties over galloping onion prices that have touched a high of between `70 to `80 per kg in retail in recent days. Even the UPA’s key ally, the Trinamul Congress, appeared unhappy with the skyrocketing prices of onions saying that it was against this.
While the PM is also reported to have expressed his deep concern over the sharp increase in onion prices, immediate relief for consumers seems unlikely despite the measures the government says it is taking to make onions affordable once again. As Union agriculture minister Sharad Pawar told reporters here on Tuesday, onion prices will remain high for the next two to three weeks and fall only after that.
Union finance minister Pranab Mukherjee too said he would talk to the ministries concerned to remove the bottlenecks in the supply chain to facilitate availability of onion at reduced rates to consumers.
Officials from Mr Pawar’s ministry attribute the sudden rise in onion prices to hoarding and speculation. Onion prices have almost doubled in recent days, forcing the government to suspend its exports until January 15, 2011. Though the agriculture ministry claimed on Tuesday that onion prices dropped in the Nasik and Azadpur (Delhi) mandis after the decision to ban exports temporarily, its price increased to as much as `85 per kg in some markets. “It is very unfortunate that onion prices have risen very high. There is a mismatch between supply from the mandi to the consumer point,” said Mr Pranab Mukherjee.
Mr Pawar said: “Onion prices will remain high for the next three weeks. The situation is likely to improve only after that period.” He said heavy rains in the biggest producing centre, Nashik area, during November substantially damaged the onion crop.
“We expect that arrival of onion from Uttar Pradesh, Gujarat and Madhya Pradesh in the next couple of weeks will bring down the prices,” said Mr Pawar.
Meanwhile, the government ruled out immediate plans to import onion to check the domestic prices even as small consignments of the commodity arrived from Pakistan.