Rise in Prices of Onions

The year-wise and month-wise average prices of onion, including during the last three months, is at Annexure.

Prices of food items are inter-alia affected by mis-match in demand and supply, shortfall in production owing to adverse weather conditions and seasonality, increased transportation cost, supply chain constraints like lack of storage facilities, artificial shortage created by hoarding and black marketing, etc. Untimely and prolonged rains during month of September and October, 2019 caused damage to Kharif onion crop leading to short supply and increase in its prices.

Several steps such as creation of onion buffer of about 57,373 MT during Rabi 2019, withdrawal of incentive on export of onions under Merchandise Exports from India Scheme (MEIS) w.e.f. 11.06.2019, imposition of Minimum Export Price (MEP) of $850/MT on 13.9.19 and subsequent ban on exports of onions since 29.09.19, facilitation of import by private traders, imposition of stock limit on onion traders, approval for import/procurement of 1.2 lakh MT of onion etc., have been taken by Government to curb price rise.

This information was given in a written reply by the Minister of State for Consumer Affairs, Food & Public Distribution, Shri. Danve Raosaheb Dadarao in Rajya Sabha today.