New Delhi: Retail prices of onions declined by Rs 5-10 per kg to Rs 60 in metros across the country after the Income Tax department conducted raids on Friday on onion traders to check hoarding of onion stock.
The maximum fall in retail prices was seen in Chennai, where the rates declined by Rs 10 to Rs 50/kg today from Rs 65/kg on Thursday. Similarly, prices dipped by Rs 5 to Rs 60/kg in both Delhi and Mumbai.
However, prices rose marginally to Rs 60/kg in Kolkata, according to reports from these centres.
"Arrival of new crops from Gujarat in Delhi and southern states has cooled off the prices a bit, not only in retail markets, but also in the wholesale markets," General Secretary Rajendra Sharma of the Tomato and Onion Merchants' Association of Delhi's Azadpur mandi said.
In addition, reports of raids on hoarders and black marketeers in states such as Uttar Pradesh, Punjab, Haryana and Chandigarh has sent a positive signal to retailers, another trader observed.
In Delhi's Azadpur wholesale market, onion supplies have almost doubled to 1,100 tonnes from yesterday's level. A large quantity of over 500 tonnes of onions has been sourced from Gujarat and 250 tonnes from Rajasthan, Sharma said.
As a result, wholesale price of onions in the national capital fell by Rs 2 from yesterday's level to Rs 43/kg, he added.
Similarly, wholesale prices in Chennai dipped by Rs 4 to Rs 60/kg. In Kolkata, prices remained unchanged vis-a-vis Thursday's level at Rs 50/kg. In contrast, prices rose by Rs 3 to Rs 47/kg in Mumbai, according to data from the National Horticultural and Research Development Foundation.
Retail prices of onions had touched a peak of Rs 70-85/kg on December 22, 2010, due to sluggish supply in the wake of crop damage in Maharashtra and Karnataka following unseasonal rains.
Food inflation also crossed 18 per cent for the week ended December 25, 2010, due to a rise in the prices of vegetables, including onions, fruits, milk and meat.
(With PTI inputs)
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