Onion Price Hike: Major news for common people. Wholesale onion prices in Lasalgaon, one of the largest markets in the country, have surged by 25 percent over the past week. In response, the government is set to release onions from its buffer stock to help control the price increase. Traders anticipate that prices may continue to climb due to the late arrival of the Kharif onion crop from South India, which was planted later than usual.
The government plans to start selling onions from its buffer stock in the first week of September. Despite the government raising the minimum assured purchase price seven times this season, the estimated onion procurement is about 25 percent below the target of 200,000 tons.
Wholesale onion prices have increased by 25%
On Wednesday, average onion prices at the Lasalgaon Agricultural Produce Market Committee reached Rs 27 per kilogram, up from Rs 21.50 per kilogram on August 5, marking a nearly 25 percent increase. During this time, the price of the highest quality onions rose from Rs 24 per kilogram to Rs 30 per kilogram. Onions from the Rabi crop, harvested in March and April, are the primary source of onions in the country until October, supplemented by the smaller Kharif crop from Karnataka, Telangana, and Andhra Pradesh, followed by the main Kharif crop from major states like Maharashtra and Madhya Pradesh starting in October.
Onion exporter from Maharashtra, says that onion prices are likely to remain stable in the upcoming weeks. However, the weather in September will play a crucial role in determining price trends in the months ahead. If rain damages the new crop in South India, it could lead to higher prices. Conversely, if the new crop is of good quality, prices should stay manageable.
What is causing the delay?
The late onset of the monsoon in Maharashtra has postponed Kharif sowing, which is likely to delay the arrival of Kharif crops from the Nashik region. Traders indicate that this situation heightens the significance of the southern crop for maintaining price stability. Although there has been no reduction in Rabi onion production and storage, the quality of the crop is poor, according to traders. Shah said that this year, bad weather has affected the quality of onions not only in India but across the world.