After hike in milk price, onion rates go up | Mint
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Business News/ News / After hike in milk price, onion rates go up
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After hike in milk price, onion rates go up

Onion price hike: The retail price of onion has crossed ₹40 per kg and traders said it will increase up to ₹50 per kg

Onion prices have seen around a 60-80% rise in the last weekPremium
Onion prices have seen around a 60-80% rise in the last week

Onion prices have reportedly shot up across the country in recent days. As per a report by The Free Press Journal, the essential commodity rates have seen around a 60-80% rise in the last week. The news portal added that the surge in prices will continue until the fresh crops hit the market by the first week of November.

The retail price of onion has crossed 40 per kg and traders said it will increase up to 50 per kg. At the beginning of October, onions were available between 15 and 25 per kg in the retail market.

APMC administration told FPJ that the old stocks of onion are about to get over and the current supply is from that stock, not farmers. Therefore, the prices have escalated.

The buying price of onion from stock (godowns) is around 30-40% higher than a fortnight ago. Therefore, the buying price of onion is between 15 and 30 per kg.

The trader added the prices will stabilize after the arrival of the rabi crop. The rabi onion contributes to 70% of the total onion production. The Kharif onion contributes very little but plays an important role in maintaining supply during the lean period of September-November.

Separately, last week country's two-largest milk brands Amul and Mother Dairy hiked prices of full cream milk by 2 per litre citing a rise in input costs.

Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets milk under the Amul brand, has hiked the prices of Amul Gold (full cream) and buffalo milk by 2 per litre each across all markets except for Gujarat.

Amul Gold prices have been increased from 61 per litre to 63 per litre while the 500 ml pack will cost 32 against 31 earlier. Buffalo milk prices have been increased from 63 per litre to 65 per litre.

Following Amul's decision, Mother Dairy also announced an increase in prices of full-cream milk and cow milk by 2 per litre in Delhi-NCR and some other markets in North India with effect from October 16.

Mother Dairy's full-cream price has been revised to 63 per litre from 61 per litre while the cow milk rate has been hiked to 55 per litre from 53 per litre.

This is the third hike by both the leading players this year -- a move that will impact the household budget. Rates were raised by 2 per litre for all variants in March and August as well.

Dairy firms have attributed the rise in milk prices to an increase in their procurement cost of raw milk. Milk producers/farmers have raised rates of raw milk as fodder and cattle feed have become dearer.

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Published: 17 Oct 2022, 10:22 AM IST
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