Bulb prices hit the roof, leaves Ludhiana residents teary-eyed
People in the business are hoarding the last stock of onions in the market, creating a shortage that drives prices up, says Rishu Arora, vice president of New Vegetable Market, Ludhiana
The steep rise in the cost of one of the essential vegetables of the Indian kitchen, onions, in the past few days has brought tears to the eyes of locals, with the experts attributing the sudden surge to hoarding that has led to a shortage of the versatile staple food in the market.
Over the past four days, onion prices have doubled, causing significant concern among the public. Earlier this week, onions were available at a retail price of ₹30-40 per kilogram, but just two days ago, they soared to ₹80-100 per kilogram.
The primary reason behind this surge, according to experts, is the hoarding of onions by businesses, resulting in a shortage of the vegetable and pushing prices to unprecedented levels. Wholesalers predict that the new harvest of onions will only arrive in the markets post-Diwali or by the last week of November, which means that consumers will have to bear the surge in the price of this kitchen staple for some time.
Rishu Arora, vice president of New Vegetable Market, said, “The primary reason behind this surge is that people in the business are hoarding the last stock of onions in the market, creating a shortage that drives prices up. If steps are not taken to control this, prices in the coming months could skyrocket to a range of ₹120-150 per kilogram.”
Just a week ago, onions were being sold in wholesale markets for ₹20-25 per kilogram, with vendors selling them at a price of ₹35-50 per kilogram. However, following the recent surge, onion prices in wholesale markets have risen to ₹45-50 per kilogram, causing vendors to sell them at a staggering ₹80-100 per kilogram in the city.
Gagan, a vegetable retailer in Ghumar Mandi, said, “People come and try to bargain with us as if we have control over the prices. Those selling door-to-door are asking ₹100 per kilogram. I have only brought 10 kilograms of onions today for retail because people are buying less due to the increased prices.”
Consumers are feeling the pinch with essential commodities like onions experience significant price surge. Namita Mahajan, who was buying vegetables from the same vendor, said, “It’s always the most essential commodities that see price surges. A month ago, it was tomatoes, now it’s onions, and in the coming month, it could be milk, pulses, or cereals. However, the salary of the working class remains the same, leaving them burdened with unexpected expenses.”
In an attempt to curb the rising prices and ensure domestic availability, the Centre has imposed a minimum export price (MEP) of $800 per metric tonne on onion exports. This restriction will be in effect from October 29, 2023 to December 31, 2023.
A notification by the directorate general of foreign trade (DGFT) on October 28 had said, “The onion (all varieties, except Bangalore Rose and Krishnapurum), excluding cut, sliced, or broken in powder form, shall be subject to a minimum export price of $800 F.O.B per metric tonne till December 31, 2023. The notification will come into effect from October 29, 2023.”