Prices of onions in Azadpur mandi fall on MEP, fresh arrivals, govt disposal

Onion prices have fallen everyday for the past four days in Azadpur Mandi of New Delhi, since centre notified a $800/ tonne MEP

The mandi prices of onions at Azadpur, Delhi, Asia’s largest wholesale market for fruits and vegetables, have declined to Rs 30-40 per kilogram from Rs 60-65 per kilogram (kg) last week.

The decline, as per Mandi traders, follows government intervention in the Minimum Export Price (MEP) of $800 per tonne on October 28. The MEP of $800 per tonne roughly equates to Rs 67 per kg.

According to traders, the arrival of kharif crops from Rajasthan has boosted supplies along with government disposals in the mandi.

“The government has started selling onions via Nafed, which is bringing down prices. Furthermore, the arrival of onions from Rajasthan has begun. The MEP ceiling has also brought down demand, therefore reassuring supplies,” Surinder Babu, an onion trader from Azadpur, said.

However, retail onion prices in the national capital remained elevated, ruling at Rs 78 per kg, data compiled by the Department of Consumer Affairs showed on November 1. The prices had hovered around Rs 40 per kg a fortnight ago.

At the same time, the average price of onion across the country was around Rs 56.63 per kg. Meanwhile, the maximum rate was Rs 90 per kg; the modal price was Rs 60 per kg, and the minimum rate of the vegetable was Rs 18 per kg.

The average wholesale price of onion stood at Rs 4,657.46 on November 1, up from Rs 3,476.21 a week ago.

The price rise came soon after the Navratri festival ended on October 24. Onion was being sold at Rs 35–40 per kg till then.

Prices of this commodity are expected to remain high throughout the festival season. However, the government is adamant about not letting prices touch Rs 100.

The government is boosting sales of onions in retail markets to rein in the price of the essential commodity, a senior official of the Consumer Affairs department said on October 26.

The central government had earlier decided it would maintain three lakh tonnes of onions in the 2023-24 season as buffer stock but increased it to five lakh tonnes after prices rose in August.

It announced further strengthening of stocks, building up their buffer to seven lakh tonnes with the aim of keeping onion prices under control. In 2022-23, the government had maintained 2.51 lakh tonnes of onion as buffer stock.

The “decision to impose Minimum Export Price of $800/tonne on onion with effect from 29th October 2023 till 31st December 2023 to discourage exports and maintain availability in domestic markets has shown an immediate impact of price correction in Maharashtra markets,” the Centre in an official statement.

Onions continue to be under an export duty of 40 percent, imposed by the Centre on August 20 to arrest the price rise.