Bhubaneswar, Jan. 7: Income-tax officials today raided three major onion godowns in the city following complaints of hoarding of the commodity. The onion price in the city has hit an all time high and is being sold at Rs 56 per kilogram.

As the sleuths, accompanied by the local police, reached the godowns in the outskirts of the city, the traders ran away leaving their establishments. Officials have seized several lakhs in cash. The raids were led by deputy director (investigation), Income Tax, Sobhan Sahu.

“We have received a tip-off about the discrepancies in the sales records and the stock of these godowns. The officials are now conducting raids in three godowns. As the raid is going on, we cannot reveal anything more,” Sahu said.

The officials are believed to have seized incriminating documents related to the stock of onions in these godowns. Though there are allegations that traders are hoarding onions to make a quick buck, the officials remained tight-lipped about the hoarding aspect. The Aigania godown complex has 30 godowns, of these eight store onions and 12 deal with potatoes.

Secretary of the local Kuberapuri Merchant Association Shakti Mishra said: “Earlier 10 to 12 onion trucks were coming from Maharastra on a daily basis. Now the arrival has come down to only two to three trucks and this has resulted in the price rise. The per day requirement of onions in the city is around five tonnes. We receive between two and three tonnes. We are not able to meet the required demand. The crisis will remain until new crops arrive from Maharashtra.”

While local traders purchase onion at a price ranging between Rs 38 and Rs 40 from the godown, they are selling it for Rs 56 in local markets.

Gopinath Sahu, a grocery shopowner, said: “In a bag of onion, three to four kilos of the produce goes waste. We get 36 kg of onion though we pay for 40 kg.”

The lower and middle class consumers have to bear the brunt of escalating onion prices. “ I am not able to give onion any more to my customer during lunch,” said Rama Das, a local roadside fast food vendor.

State food supplies and consumer welfare secretary, A.K. Meena, said: “Onion is not an essential commodity. However, we have asked all the district collectors to ensure that businessmen did not hoard the produce in their district. They have also been asked to ensure that trucks carrying onions should have a smooth transportation.”

“The situation may improve after two weeks. Our officials are in constant touch with the traders of the Maharashtra also,” said Meena.