Delhi In Tears! Why Onion Still Costs a Bomb

On September 29, the Centre banned onion exports and capped stock limits for retailers and wholesale traders to prevent hoarding and control the soaring prices.

- Gulam Jeelani and Prashasti Shandilya

A week later, the National Capital remains in ‘tears’ as prices of the second most consumed vegetable after potato are still burning a hole in people’s pockets.

On Friday, the wholesale price range was Rs 25-35 a kg. The retail price hovered between Rs 60 and Rs 70. This is more than double the normal rate.

Suresh Kumar, a retailer in Delhi’s Paharganj, said, "The export ban and Navratra have had some impact. However, the prices are yet to stabilize after the past few days witnessed a steep increase." Several online shopping portals are selling onion at an offer price of Rs 57 per kg if 5 kgs are purchased.

Such a price rise disrupts people’s daily budget. An average household spends 13% of its total vegetable expenditure on onions, shows government data.

“I have stopped using onion in salads. In fact, I have stopped cooking vegetables that require onion,” said Pratishtha, a 29year-old mother of two.

FLOOD FACTOR

The floods in onion-producing states such as Maharashtra, Andhra Pradesh, Gujarat, and Assam have been a big factor.

"Farmers in Maharashtra have suffered huge crop losses due to floods. Hence, supplies from onion hotspot Nashik to our city have shrunk, resulting in sharp price rise," said Vishnu Prasad, a wholesaler in Delhi’s Azadpur Mandi.