If the local suppliers and stockists (cold storage owners) are to be believed, onions is these days considered to be a scarce commodity, which most of the kitchens are unable to afford due to its price factor. Thanks to the price leap in past three days as well as gross mismatch between demand and supply network besides hoarding by the stockists.But the administration continues to harp and assert that they are constantly monitoring the prices of vegetables, particularly the Onion, which is ‘politically’ sensitive like India where Government was toppled in past when onion prices had gone high-sky. However, the administration assured that it has ensured a ‘price-rise-check’ mechanism by creating on buffer stock of onions, but it seems to have failed and its obvious fallout - onion price overshoot.
Another crucial factor triggering the price-rise was inadequate supply against demand in local market after Eid-ul-Azha and hoarding which created artificial shortage resulting in skyrocketing of prices. The prices hovered around Rs 30 to 40 per kg during the beginning of the month and surprisingly scooped to Rs 120.Talking to this scribe, an onion wholesaler at Multan market said “the existing unpredictable onion business is a game of weeks. With the restoration of supply from the farmers , the pressure of excess stock would scoop down the prices. He said that onion crop was far better than past and we have surplus stock of onions. On the other hand, if supply was not restored , the prices will touch the peak”.
Haji Akram Arain said “Today onions are sold at a wholesale price ranging Rs 500 to 600 per 5 kg while in retail it is available at Rs 120/kg. Though the prices have gone up by 200 per cent, these are stable for last 3/4 days”.
Sharing his views on factors for sudden volatility in onion business, he said that this year Punjab and Sindh recorded bumper onion production which as usual arrived in the market in the season. Sufficient stock was lying in the market. But stockists created artificial shortage under the criminal connivance of the administration and stored lakhs of maunds of onions.Sources said that there is no possibility of exhausting the stock before coming new crop.
Before Eid-ul-Azha mainly with the beginning of Zil-Haj month, the yield from different onion producing belt in Punjab and other provinces starts reaching the wholesale market. At the same time, sales of old stock that is being consumed in Southern region so far drastically comes down. Since people of that region prefer fresh arrivals from September first week, the existing old stock is pushed to the wholesale mandies and neighbouring regions. This significantly stabilizes the shooting prices, they maintained.
