It’s not just onions; potatoes and tomatoes are also leaving the common man in tears. Prices of the three most common vegetables have hit record highs ahead of Diwali.
Potato, onion and tomato are 40-50 per cent costlier today than at the same time last year, says Pradipto Sahoo, Head of the Fruit and Vegetable Business at Mother Dairy.
Trade sources attribute the rise to the disruption in supplies due to the extended monsoon and the recent rain from Cyclone Phailin affecting the harvest. However, consumers blame hoarding and profiteering for the high prices.
Since early October, the average price of potato has risen by about 30 per cent to Rs 25-30 a kg in Delhi at the retail level. In Bangalore, where potato arrivals are higher than in other markets, the average wholesale price has moved up 30 per cent in the past three weeks.
In Agra, the other large market for potato, the average wholesale price has risen by over 12 per cent during the period, while in Kolkata, the increase has been about 25 per cent.
Tomato prices have risen by more than 25 per cent to currently retail at Rs 35-40 a kg in Delhi.
Onion prices have stabilised at the wholesale level, at Rs 50-60 a kg, but continue to rule high at Rs 70-100 a kg at retail outlets in Delhi, with traders taking advantage of the supply situation. The rise in onion prices since July has fuelled food inflation, which touched 18.4 per cent in September. The price rise has affected sales of potato, onion and tomato, the vegetables most consumed by the common man. “Our sales are down 10-20 per cent year-on-year by volume, while the value has gone up by 30-40 per cent,” said Sahoo.
Rajinder Sharma, Chairman of Azadpur Mandi in Delhi, attributed the increase in prices of potato and onion to the extended monsoon and the rain accompanying Cyclone Phailin affecting the harvest. With rains ending in the North, supplies should improve post-Diwali, bringing down prices, he added.
Though the Government has been planning to import onions to boost supplies, Sharma said there were no takers for the imported varieties as they were found to be less tasty.