The retail price of onions is presently between Rs. 35 to 40 per kilogram, while the wholesale price is Rs. 22 per kilogram. In the week of January 5-10, prices of onions increased by up to 250 per cent as compared with the same period last year.
Moreover, concerned about the 57 per cent jump in onion prices in just one month across the country, the government is reportedly considering re-introducing a Minimum Export Price (MEP) to discourage onion exports while in May 2012, the government had abolished the MEP regime to help Indian traders take advantage of rising onion prices in the global markets.

Delhi Chief Minister Sheila Dikshit said that Hoarding of this produce cannot be allowed and that she had directed all relevant departments to take strict action against any hoarder of onions in the city. In fact, she had written to agriculture minister Sharad Pawar, asking him to intervene and adopt a "tougher" stand against hoarders while also requested urgent and appropriate action in curtailing onion exports as well to alleviate the situation.

It seems the hike in onion price has resulted partly due to wake of poor rains in the onion-growing regions of the country like Maharashtra, Gujarat and Madhya Pradesh which supply a majority of the country's onion crop.  

It's undoubtedly a serious problem!

(AW:Samrat Biswas)