Tears over onions: Govt blames traders, they blame rain

So severe is the shortage that Maharashtra, which accounts for 30 per cent of the country’s 66 lakh tonne annual crop of onion, is also feeling the heat. Retail price went beyond the psychological barrier of Rs 20 and is now moving beyond Rs 25 per kg. In Lasalgaon in Nashik, the country’s largest onion market, the wholesale rate is headed for Rs 2,100 per quintal, up from Rs 1,900 till a few days ago.

“Onions from Hubli and Bangalore usually go to Delhi and Kolkata, but the crop was destroyed, so Nashik and Pune onions are in demand,” said Prakash Dayama, a prominent onion trader. From 350 tractors, each carrying a load of 30 quintals, that come to the Lasalgaon market daily, the number has gone down to 150 in the last few days.

Speaking to The Indian Express, State Marketing Minister Harshawardhan Patil said the state Government has taken serious cognisance of the onion shortage and district officials have been asked to take review of the local situations. “Within two days I’m holding a meeting of stakeholders and initiating steps to release onion stocks. At many places farmers are hoarding onion expecting more price to their produce. Also delay in kharif crop is affecting the supply,” said Patil, who added that the state will crack down on artificial shortage.

While government officials blame traders for hoarding, the traders say the rain is to blame. As per NHRDF data, the country had a 20 lakh-tonne buffer stock from last year’s 66-lakh production, of which only 10 lakh tonnes have been consumed. The situation was not much different in Maharashtra, where 20 lakh tonnes were produced last year, of which about seven lakh tonnes were exported.