Onion hits Rs 80 a kg in Nagpur retail markets ahead of Diwali, prices unlikely to ease for 6 weeks

Just ahead of Diwali, inflation is hitting household budgets in Nagpur. A sudden rise in the price of onions, a daily kitchen staple, has upset the finances of many homes. Good-quality onions now sell for up to Rs 80 a kg in the retail market.

Along with festival shopping, the cost of daily cooking has also gone up. High onion prices have thrown housewives' budgets off balance, and consumers must face rising prices in the middle of the festive season. According to traders' estimates, a big fall in onion prices is unlikely over the next one and a half months.

Onion prices have been rising continuously for the past few days. The increase in the wholesale market has now reached the retail market. Wholesale rates in the market committees have reached Rs 55 to Rs 65 a kg. A further five per cent charge has to be paid on top of that towards transport costs and commission, which raises the sellers' buying cost further.

As a result, retailers have to buy onions from the wholesale market at Rs 65 to Rs 70 a kg. The same good-quality onions are being sold at Rs 80 a kg in the retail market. Consumers, already troubled by inflation, are bearing a heavy financial burden from the rise.

Traders say the main reason for the price rise is the gap between demand and supply. The stock of old onions is nearly exhausted. The market will have to wait some more time for the new crop to arrive in large quantities.

With demand for onions rising because of Diwali while supply is limited, prices have stayed high. Sellers are also being told by brokers that onion prices are unlikely to come down for at least a month and a half. Consumers may therefore have to keep buying expensive onions for some more time.

Along with onions, the prices of garlic and ginger have also troubled consumers. In the wholesale market, garlic sells at Rs 250 to Rs 300 a kg, while in the retail market it is sold at Rs 320 to Rs 400 a kg. Traders expect that demand for garlic will rise further as the cold sets in, so prices will remain high.

Meanwhile, as the stock of old ginger is nearly exhausted, sales of new ginger have begun in the market. New ginger is priced between Rs 80 and Rs 100 a kg. Thus the price rise in all three key kitchen ingredients, onion, garlic and ginger, is affecting ordinary people's kitchens.