The Hindu Business Line : Onion prices rule high despite Govt intervention

FAST AND PRICEY: Consumers pick and choose onions at higher prices at a rythu bazar in Visakhapatnam, in order to avoid the long queue at the Civil Supplies Corporation's subsidised counter. - C.V. Subrahmanyam

Visakhapatnam , Feb. 5

ONION prices are still ruling high, at Rs 13-14 a kg in the retail market, even after the market intervention exercise taken up by the State Government.

Onions are being brought from Maharashtra and sold at counters in rythu bazars all over the State at Rs 7 a kg. Needless to say, there are long queues in the bazars and many consumers are left disgruntled as they have to wait a long time and only a kg is being given for each person.

A local business school, Dr. N.S Kolla School, has conducted a survey and released the findings this week. According to the survey, the increase in the prices has not brought down the consumption to any extent and only wastage is being avoided. On the aggregate, a small middle class family consumes 3.2 kg a week and there is no change in the consumption pattern.

There is also no panic buying as onions are available in the rythu bazars. The average waiting time in the bazars is only 25 minutes except at the Akkayyapalem bazar, says the survey, but many consumers complain that they are waiting for at least an hour to get them.

According to the survey, the majority of the consumers feel that a price of around Rs 9 a kg is fair. Only 15 per cent of the respondents have said that they can afford onions at Rs 10 a kg.

``This year the crop in Maharashtra has been affected, resulting in the scarcity and price hike and our (AP) Government is, of course, providing onions at a subsidised rate in view of the elections.

In the present market, it is impossible to sell onions in the retail market at Rs 10-11 a kg,'' says Mr. P. Satyanarayana, General Secretary of the Jnanapuram Wholesale Vegetable market here.

As per his calculations, the situation may improve by May or so. ``But then the new Government would be in place by then and none will bother about onions. Onions have become highly politicised,'' he said.

``Tomatoes are now selling at Rs 1 a kg in the market here and farmers are not even bothering to bring them here from villages, as they are unable to recoup the transport costs. Why is no one talking of them?'' he asked.

More Stories on : Horticulture/Fruits & Vegetables | Andhra Pradesh

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