The large difference between wholesale and retail prices of onions in markets such as Delhi, Indore, Chandigarh and Mumbai has taken the government by surprise despite several steps announced by it, including an advisory to states to crack down on hoarding and speculation.
Data available with the government showed that last week, the key kitchen ingredient was available for Rs 12.75 a kg in the wholesale market in Delhi. But the retail price was Rs 24, nearly twice the level. "It is quite surprising that the price doubles from the time it leaves Azadpur mandi. Middlemen seem to be charging a huge premium," said an official.
In fact, official data showed that Delhi is seeing unusually price behaviour, although there is pressure in other markets such as Mumbai too, where the difference is a little under Rs 10 a kg. But in Kolkata, the difference between the wholesale and retail price is Rs 5 with households getting onions for Rs 24 a kg, the same as Delhi. Similarly, in Agra the difference is Rs 3 a kg, while in Hyderabad and Bangalore the gap is just Rs 2 a kg.
A labourer weighs a sack of onions in a wholesale market in Hyderabad. (AFP photo) "There is an element of speculation and expectation that there will be a further spurt due to shortages. This needs to be handled," added an official, pointing to the spurt in retail prices in cities such as Bangalore, Vishakapatnam, Chennai, Indore and Bhubaneswar, where prices rose by up to Rs 12 a kg between May 27 and June 27.
In Delhi, there was a moderation of Re 1 a kg in retail prices due to higher supplies by Nafed, but the wide gap in retail and wholesale rates is expected to be the subject of inter-ministerial discussions to crack down on the possibility of artificial jacking up of prices.
A vendor selling onions and other vegetables in a makeshift retail shop in Kolkata. (TOI file photo)
With monsoon rains expected to be lower than normal levels, the government is monitoring the prices of 22 essential commodities with onions, potatoes, milk, pulses and non-basmati rice coming under special focus. In Delhi, the Centre had ordered a special drive to ensure that there was adequate supply of onions and potatoes at reasonable rates.
Finance minister Arun Jaitley is scheduled to meet state food and consumer affairs ministers this week, where the issue of rise in food prices will be discussed.
While retail prices are holding up, officials said that there is a possibility of an increase in July when supplies from Rajasthan and Nashik slow down. Sources said that Delhi government has asked Nafed to supply onions and potatoes to meet possible shortages.
Source:- timesofindia.indiatimes.com
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