The prices of basic commodities like fuel and onions are skyrocketing just as the festive season is around the corner.
While fuel prices hit a yearly high on the back of the ongoing tensions in the Middle East and the US-China trade war, onion prices surged to Rs 70-80 per kg in the national capital amid tight supplies.
The soaring price of the key kitchen staple has made it such a valuable commodity at the moment that thieves have started stealing it from shops and godowns.
Have you been wondering why onions have become so special all of a sudden? Of all the vegetables, why should onion prices alone swell by nearly Rs 30-40 per kg pushing it to a four-year high? Well, here's the answer.
Maharashtra, Madhya Pradesh, Andhra Pradesh and Karnataka are major producers of onions in India. These states were severely hit by the monsoon this year, which destroyed their farm produce.
As there is a very limited supply of onions now, the demand for it has shot up, resulting in the price hike.
According to media reports, onion traders say that the prices might not come down anytime soon. The current situation is expected to remain until November 2019.
What has the government done to arrest the price hike?
On 24th September, Food and Consumer Affairs Ram Vilas Paswan said the Centre will consider imposing the stock limit on onion traders if retail prices continue to soar even after exhausting the buffer stock.
The government will "wait and watch" over the price situation for some time before imposing the stock limit as it is equally concerned about the interests of farmers, he added.
Agriculture Minister Narendra Singh Tomar assured that the situation will improve in the next few days as supply is being improved in the domestic market by agencies like the National Agricultural Cooperative Marketing Federation of India (NAFED).
To the relief of consumers in Delhi, central agencies NAFED and the NCCF have been selling onions from the buffer stock at Rs 22-23 per kg, while Mother Dairy's Safal stores are selling at Rs 23.90 per kg.