Spiking onion prices have prompted India’s Ministry of Agriculture to call meetings with stakeholders on Wednesday (January 23).
In two weeks, onion prices have risen 25 per cent to trade between Rs16 -Rs17 per kg at the benchmark Lasalgaon market in Nashik.
Prices in Mumbai stood at Rs 23-24 a kg, while in New Delhi retail prices are higher, due to high transportation costs.
A study by the Small Farmers Agriculture Business Consortium between January 5 and 10 showed the average price in Lasalgaon had risen 246 per cent compared with the same period last year.
In worrying signs, India’s National Council of Applied Economic Research has estimated a 20 per cent fall in onion output for 2012-13, with demand increasing in both domestic and foreign markets.
However a ban on exports is unlikely.
“The agriculture ministry has convened the meeting to assess the situation on the ground,” said Virendra Singh, chairman, National Cooperative Consumers’ Federation of India.
“There is no possibility of a ban on exports, as apprehended by traders.”