Daijiworld Media Network - Bengaluru (SP)

Bengaluru, Dec 7: Severe shortfall in supply has pushed onion price skyward. The vegetable has reached Rs 200 a kg mark in the state, which is beyond the reach for common citizens.

Onion price hovered around Rs 200 per kg in wholesale markets all over the state including Yashwanthpur here and Hubballi. The state government has been conducting raids on wholesale dealers who it suspects are hoarding this much sought-after vegetable. It is said that the raids so far conducted exceeded 150 as on Friday.

Sources in the market as well in the government expect the prices to somewhat come down by January and not before. Onion and Potato Traders Association secretary here, C Uday Shankar, said that the onion price per kilogram touched Rs 180 on Friday. He said inclusive of Agricultural Produce Market Committee charges and taxes, the commodity price will touch Rs 200 mark easily. He confessed that the supply of onion has reduced to just about 25 to 30 percent of the current demand.

In Hubballi also, which is considered to a major market, onion price has been racing towards Rs 200 per kg mark on account of shortfall in supply that has been around 60 percent. With the passage of each week since the last over a month, the gap between the demand and supply positions is broadening, thus contributing to the spiraling of the onion prices.

State chief secretary, T M Vijay Bhaskar, said that the government is keeping a close watch on the situation and has been taking action against illegal hoarders through raids under instructions from the central government. The officials have been raiding major markets too check inflow, outflow and stock of onion.

It is learnt that the central government has pegged the stock of onion a wholesaler can have at 25 tonnes whereas retailers can keep five tonnes maximum. The officials said that so far no hoarding was observed during their 150 odd raids.

Only Maharashtra is ahead of Karnataka in onion cultivation in the country but because of floods, onion crop was ruined this time. The state has been trying to get maximum possible allocation of onions that are being imported from other countries.

It is gathered that India will get the onion stock of 17,000 tonnes it has ordered from Turkey and Egypt during the third week of December and therefore, the officials feel that the prices may ease after first week of January 2020.