Onion prices soar again, retail rates touch Rs 70 per kg | Bhubaneswar News


Onion prices soar again, retail rates touch Rs 70 per kg

Bhubaneswar: From an everyday kitchen staple at Rs 20-30 a kg to a commodity costing as much as Rs 70, onions have emerged as the latest concern for consumers in the state, with retail prices more than doubling in two months. Retailers in twin cities and elsewhere in the state are currently quoting Rs 60-70 a kg, against Rs 20-30 in early July. Prices have risen further from the Rs 50-60 a kg prevailing in the third week of Aug.In the wholesale markets of Bhubaneswar and Cuttack, onions are selling at Rs 35-50 a kg, depending on quality. The difference widens at retail points, where prices are largely unregulated.Shakti Shankar Mishra, general secretary of the Aiginia Vegetable Merchants’ Association, said Odisha has little stock of its own and prices are being determined daily by supplies from source markets. Aiginia, Bhubaneswar’s biggest wholesale market for onions and potatoes, is currently receiving around 250 tonnes of onions a day. “Two to three months ago, a 50-kg gunny bag of onions cost Rs 1,200-1,500. Now the same quantity costs Rs 2,500-2,800,” he added.The price surge has been driven largely by lower arrivals and supply disruptions in major onion-producing states, traders said. Odisha depends heavily on supplies from outside the state, making its markets vulnerable to fluctuations in arrivals, transportation and wholesale prices.Nashik in Maharashtra and Madhya Pradesh are the major source markets, accounting for nearly 80% of Odisha’s supplies, while the rest comes from Kurnool in Andhra Pradesh and Bengaluru in Karnataka, Mishra said.At present, there is little or no supply from Andhra Pradesh and Karnataka as the crops have been damaged in the rain, leaving Nashik to bear most of the pressure. Prices there have also risen amid limited stocks and flood-related disruptions, traders at Aiginia said.Higher procurement and transportation costs have subsequently pushed up retail prices. However, wholesale traders alleged that retailers were charging substantially more than the wholesale rates. “Retailers should ideally sell at Rs 5-10 more than the wholesale price, but that is not happening. There is no monitoring of retail prices by the govt,” Mishra said.In Cuttack’s Chhatra Bazaar, onions are being sold at around Rs 60 a kg, while smaller varieties are available for about Rs 50. Prices vary by size and quality across markets.Soumyaranjan Das, a retailer at the market, said the quality of onions arriving from Nashik has also deteriorated, with considerable damage reported in consignments. “The quality is poor and there is a lot of damage in the stock we receive. That is also forcing us to increase prices,” he said.For consumers, the sharp increase is beginning to affect household purchases. “The price has increased so much that we have started buying smaller quantities. Onion is used in almost every dish, so it is difficult to avoid it altogether,” Subhalaxmi Jena, a homemaker in Bhubaneswar, said.Meanwhile, authorities in the local civil supply offices admitted to the damage in stocks arriving from Nashik leading to price rise and added that they are keeping an eye on the retail market scenario. The new crop is expected to arrive in the markets after a month.



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