New Delhi: Traders in Onion markets, by pre-fixing the prices of Onions in the wholesale markets, have helped retail sellers to make a profit of Rs.4.crores during Christmas season.
The wholesalers on Dec.21, who purchased Onions at Rs.34 per kg sold it in retail markets at Rs.80 per kg. on that day Delhi wholesale markets procured an arrival bumper lot of 11445 quintals (1Q=1000kg) of fresh Onions either by imports or from old stocks. The price at which wholesalers sold and consumers purchased showed a difference of Rs.4.crores to the sellers.
As there are several costs involved in bringing the commodity into wholesale markets and from there, to retail stores, to be sold to the ultimate consumers (hotels, homes, schools or families) a profit of 135% is remarkable for short living goods like onions. In 44 major markets of India, dealing in onions, traders received this profit, it is found.
The profit margin on a quintal (1000kgs) weight of onions ranged from Rs.1500 to Rs.5500 just before Christmas. Bangalore provided Rs.10.50.crores in profit to retailers.
It may take 2 to 3 weeks for fresh crops of onions to flood the wholesale markets and cut down the soaring prices, Agricultural Minister S. Pawar has indicated. Until then, hundreds of crores of rupees earned by working and middle classes could go into the pockets of retail merchants to warm their cackles. The Central Govt, is not at work but at rest, a mute spectator in such fluid situations, people observed here, paying through their noses and crying for onions.