In the past one month, onion prices have soared by 25% in Delhi and by almost 50% in Mumbai, Kolkata and Chennai. The highest increase of Rs 27 per kg has been recorded in Thiruvananthapuram. With indications of the high prices continuing for the next few weeks, government is set to place order for the import of 10,000 tonnes after opening tenders later this week.

Sources said that to deal with crisis in Delhi where prices have increased from Rs 36 per kg to Rs 45, two agencies - Nafed and SFAC - have been supplying 100 tonnes everyday for sale at Safal and Delhi Milk Scheme booths. "These agencies have already procured 2,500 tonnes for Delhi government. The state government will decide the price at which these can be sold through fair price shops," a government source said.

At a meeting chaired by consumer affairs secretary C Vishwanath last week, Delhi government representatives have told Centre that the state Cabinet will take a decision on Tuesday on the sale of onion as a part of "market intervention." Delhi needs about 800-1,000 tonnes of onion everyday.

Source:timesofindia.indiatimes.com