Consumers shed tears due to rise in onion prices; Govt claims rates will come down soon

The recent hike in onion price over the past 10 days has made people shed tears across the country. However, the government claims that rates will fall in a week’s time.

Government says that fresh supplies from Karnataka will increase its availability in a week's time. (Image: AFP)

New Delhi: The recent hike in onion price over the past 10 days has made people shed tears in the national capital. However, the government claims that rates will fall in a week’s time. According to report by news agency IANS, the government says that fresh supplies from Karnataka will increase its availability in a week's time bringing down the prices to ‘moderate’ level. A high-level committee headed by Consumer Affairs Secretary Avinash Srivastava on Friday reviewed the price and availability situation after retail prices of onion in Delhi went up to Rs 40 per kg. The committee also decided that the supply of onion to the national capital from the government's buffer stock under Price Stabilization Fund (PSF) should be increased by two-three times ‘so as to tide over any constraint in the interim supply.’ The Agriculture Ministry said the sown area under the kharif onion crop was higher than that compared to last year and fresh arrivals had started from Karnataka. It would improve the availability and keep the prices ‘moderate’, the committee said. The average wholesale prices at Nashik's Lasalgaon market - Asia's largest wholesale market for onion - have doubled in a week's time to over Rs 2,100 per quintal. The government owned Mother Dairy has already reduced onion prices by Rs 2 per kg at all its stores across Delhi. The major onion producing states are Maharashtra, Gujarat, Orissa, Karnataka, Uttar Pradesh, Andhra Pradesh, Tamil Nadu, Bihar, Punjab and Rajashan. As per official provisional data showed earlier this month, food inflation quickened to 0.51 per cent in September, as against 0.29 per cent in the previous month. Consumer inflation stood at 3.77 per cent, as against 3.69 per cent in August. Food prices make up nearly half of the Consumer Price Index. (With agency inputs)