Skyrocketing onion prices in India have forced federal government agencies to approach Turkey to procure onions, attempting to keep prices under control. The government has contracted an additional 12,500 ton of onions from Turkey and this is expected to arrive by mid-January next year. The first shipment of onions is expected to arrive from Turkey by December 31.
As reported, onion prices have been rising steadily since September and were in the range of Rs130-170 a kilogram across the country after untimely rains caused crops to fail. Interestingly, soaring onion prices figured prominently in the deliberations of the high-powered rating setting panel of the Reserve Bank as it voted for status quo in interest rates this month.
Officials said that with this additional 12,500 tons of onion, the total contracted onions so far for imports have gone up to 42,500 tons. Onion prices have shot up as domestic production in kharif and late-kharif seasons (summer-sown) is estimated to have declined by 26 percent.
Onion prices have risen by 81 percent in the last one month and are ruling above the Rs100 per kg mark for the third week in a row in most cities, as the government efforts to cool the rates seem to be taking more time than expected.
