The Hindu Business Line : AP: Onion prices keep soaring despite Govt intervention

EVEN as the Andhra Pradesh Government intervenes to arrest the spiralling prices of onion in the State, short supply continues to push the prices upwards.

Officials said onion arrivals from Maharashtra have been delayed following a long dry spell. The dry spell delayed sowings, thus hitting the regular supplies this time.

On Thursday, arrivals of fine quality onions into the Hyderabad market fell to 2,000 quintals as against 2,990 quintals on the same day last year. The second quality variety supplies were put at 3,000 quintals as against 4,480 quintals.

On August 10, fine quality variety supply fell to 1,140 quintals as against 3,160 quintals the same day last year.

Official sources said the last one week had shown significant decline in supplies. Contesting reports that decline started earlier, they said the downward trend was recorded only in the last week.

The shortage immediately reflected in the retail prices at several places in the State. In Hyderabad, it is being sold in the range of Rs 7 (in some Rythu Bazaars and places in around the wholesale market) to Rs 12-13 a kg at other shops.

A commission agent at the Malakpet wholesale market, which feeds several markets in the State, told Business Line that the price had gone up to Rs 650-750 a quintal from Rs 350-400 a fortnight ago.

Unprecedented rains in Maharashtra, from where Andhra Pradesh mainly sourced its onion supplies, was the reason for the shortfall, he felt. (Officials, however, argued that heavy rains and floods there didn't have any impact on the production of onions.)

"Only 25-30 onion trucks are arriving a day against about 100 trucks a month ago," he said.

He predicted that there would not be any major change in the scenario in the next one-and-half months.

The official sources, however, contended that the figure was inflated. The number of onion-laden trucks never fell below 40 in the recent days.

"Supplies from Maharashtra have not been that affected. They have developed storage capacities and are able to continue the supplies," they said.

They expected good supply from the Kurnool region, which witnessed good rainfall this season.

"We expect the consignments within 15 days from there," they said. Reacting to the short supplies, Dr Y.S. Rajasekhara Reddy, the Chief Minister, on Thursday directed the Civil Supplies Department to procure onions from Nashik and Pune to bridge the gap. The officials were also upbeat on the positive forecast for onion production in Karnataka, particularly in Chitradurga district.

Arrivals could be expected by the month-end.

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