After milk, onion prices to hike?

Day after Gujarat Cooperative Milk Marketing Federation (GCMMF) has decided to increase Amul milk prices by Rs 2 per litre, onion prices have reportedly shot up across the country in recent days.

According to reports by Free Press Journal, the essential commodity rates have seen around a 60-80% rise in the last week and the surge in prices will continue until the fresh crops hit the market by the first week of November.

In the retail market, the price of onion has crossed Rs 40 per kg and traders say it will increase up to Rs 50 per kg. At the beginning of the month, onion was available between Rs 15 to Rs 25 per kg in the retail market.

Ahead of the festival, the rise in onion price will dampen the mood to some extent as the commodity is one of the important ingredients in the kitchen.

According to the APMC (Agriculture Produce Market Committee) administration, the old stocks of onion are getting over and the present supply is from old stocks, not from farmers. However, the price will stabilize only after the Rabi crops start arriving by January-February next year.