1 week ago
Onion Prices Nearly Double in Calcutta as Lean Season Arrives
Onions in Calcutta have become much more expensive in just two weeks.
A kilo now costs about ₹60–65 in many markets, compared with ₹30–35 earlier.
West Bengal does not grow enough onions to meet all its needs.
It mainly grows onions in winter, so supplies become tighter later in the year.
The state brings onions from other regions when local supplies run low.
Some officials and traders think stored onions may be held back in expectation of higher prices.
Farmers’ representatives blame traders, retailers and storage practices for pushing prices up.
The central government says there are enough onions overall and is releasing supplies from its reserves.
Retail onion prices in Calcutta rose to ₹60–65 a kilo by Monday from ₹30–35 a fortnight earlier.
Bengal produces about 900,000 tonnes of onions but consumes roughly 300,000 tonnes more than it produces.
The state relies on supplies from Maharashtra, Karnataka and Rajasthan during its seasonal production gap.
Officials and traders cited dwindling supplies, possible hoarding and higher wholesale rates from Nashik as factors behind the increase.
The Centre said onion availability remains comfortable and that buffer stocks are being released and transported to cities.
- Who
- Consumers and retailers in Calcutta are affected, while farmers, wholesalers, state officials and the Union consumer affairs department offered explanations.
- What
- Retail onion prices nearly doubled, reaching ₹60–65 a kilo from ₹30–35 a fortnight earlier.
- Where
- The sharp increase was reported across major markets in Calcutta, with wider price pressures also reported in Delhi and other parts of India.
- When
- The increase was reported by Monday after prices rose over the preceding fortnight; onion prices typically remain volatile from August to October.
- Why
- The reported causes include declining local and kharif supplies, Bengal’s seasonal production pattern, dependence on supplies from other states, possible hoarding and higher wholesale prices.
Supply Shortage Explanation
Hoarding and Market Power Concerns
Main cause of rising prices
Supply Shortage Explanation
Government officials and wholesalers attributed the increase to seasonal supply shortages, weaker or delayed rainfall in parts of India, declining kharif supplies and Bengal’s dependence on outside states.
Hoarding and Market Power Concerns
The All India Kisan Sabha said speculators, private retailers, private wholesalers and storage management were dominating the market and driving prices higher.
Role of stored onions
Supply Shortage Explanation
Officials suggested that farmers holding onions in cold stores could be contributing to the temporary shortage.
Hoarding and Market Power Concerns
The farmers’ representative argued that farmers receive the least from the price rise and that a large-scale minimum assured price system is not effectively operating in the onion sector.
Government response
Supply Shortage Explanation
The Union consumer affairs department said availability was comfortable, with buffer onions being released in a calibrated way and transported to urban centres by special trains.
Hoarding and Market Power Concerns
The West Bengal Vendors’ Association called for market regulations, while the Congress communications head said rising onion prices showed that inflation was becoming unaffordable for ordinary people.
Key facts
- Calcutta retail price
- ₹60–65 per kilo by Monday
- Earlier Calcutta price
- ₹30–35 per kilo in the second week of August
- Bengal production
- About 900,000 tonnes annually
- Bengal supply gap
- Approximately 300,000 tonnes below the state’s consumption
- Onion shelf life
- The winter variety lasts about 90–100 days
- Union procurement price
- Raised to ₹26.45 per kilo, according to the report
- National procurement
- NAFED and NCCF have procured 1.2 lakh tonnes for the buffer
- All-India average retail price
- ₹43.53 per kilo, according to the consumer affairs department’s monitoring website
Quotes
Nilmoni Saha
Retailer in Kasba, Calcutta
“A 40-kilo sack of onions now costs between ₹2,300 and ₹2,500. A fortnight ago, we bought it for ₹1,200 and ₹1,400. Each sack of onions contains around 3 to 4 kilos of chhant (waste)”
telegraphindia.com
“We have to depend heavily on onion supplies from the Lasalgaon mandi in Nashik right now. When the wholesale prices are high, the retail markets feel the impact”
telegraphindia.com
Sources
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