Onion prices expected to fall over next few days in Gurugram

Gurugram Officials of the district agricultural marketing board expect the soaring onion prices to decrease in the next few days, as they are keeping a check of traders to prevent hoarding of the stock that comes in from Nasik and Indore.

Haryana goes to polls on October 21 and the state government has directed the departments concerned to control the hike in the price of onions, a staple in most households, to prevent it from becoming an election issue, said officials familiar with the matter.

In the last 10 days, onion prices in the retail market have soared up to ₹60-70 per kilogram from ₹35-40/kg. Even the wholesale price in the Gurugram market has gone up to ₹45/kg from ₹25/kg. “We are keeping a watch on the market to neutralise the price, which has spiked in the last 10 days,” said Virendra Yadav, secretary, district agriculture marketing board.

Heavy rains in onion-producing states, such as Maharashtra, Madhya Pradesh, Karnataka, and other southern states have damaged crops, due to which cities, such as Delhi, Kolkata and Patna, have witnessed a price surge over the last few days.

Affirming that the supply is being augmented, Yadav said, “Traders and farmers in other states stock onions, waiting for the apt time to sell their produce at the optimum price. Onion comes under non-perishable items, but farmers and traders are now looking to clear their stocks. Therefore, going by the data (see the box), the offloading of onions has increased to 1,500 -2,000 quintals from 700-800 quintals.”

Yadav said, “Before the price increase, 1,000-1,500 quintals of onion from Nashik and Indore were offloaded in the mandi daily. Due to floods and heavy rainfall in the onion-producing states, the overall yield has come down. Traders are currently selling the old stock. By mid-October, the new stock will also arrive in the market and the price will decrease further,” said Yadav.

According to him, there are 50 onion traders in the city dealing with traders in Nashik and Indore. Yadav and his team monitor free and fair trade, and keep the prices in check, as the product changes hands from middlemen, wholesalers, traders and commission agents to retailers.

The marketing board functions under the Punjab Agricultural Produce Markets Act, 1961, and Punjab Agricultural Produce Markets (General) Rules, 1962. Its task is to regulate the purchase, sale, storage and processing of agricultural produce, including fruits and vegetables.

“The price mechanism of fruits and vegetables cannot be regulated like crops, but the market fluctuation of non-perishable items, such as onions and potatoes, has to be prevented by not allowing unnecessary stockpiling by traders,” he said, adding there is no cartel system in Gurugram, as mandis are not huge.

Narendra, an onion trader at the Badshahpur mandi, said, “Stock holding is being done by traders in big mandis, which affects the overall price. The government is currently keeping a strict vigil, due to which there is no chance of onion prices soaring further.”

Ravi, a wholesaler, said that the prices cannot be controlled in Gurugram. “Considering heavy rainfall and floods in Maharashtra and Madhya Pradesh, farmers have little produce to sell in the market.”

Haryana is among the five states that have demanded onion from the Centre’s stock. The National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) manages the onion reserves at the Central level. “NAFED might be releasing its stock, but Gurugram has not received any, so far,” said Yadav.