Onion Price: Big news for everyone. The presence of onion in kitchens is causing distress to the average consumer, as its retail prices have surged by over 100% compared to last year, according to official data from the Consumer Ministry. Wholesale prices on 21st September were at Rs 4615.98 per quintal, a significant increase from Rs 3299.85 per quintal a year ago. The wholesale price surge has been even more pronounced than the retail price hike, with a 135% increase during this period.
After a period of stability, onion prices have been on the rise for the past two months. A month ago, the average price was Rs 40.79 per kg, climbing to Rs 54.23 on 21st September. In Delhi, prices have risen from Rs 32 to Rs 53 per kg, in Mumbai from Rs 30 to Rs 58, and in Chennai from Rs 30 to Rs 60. Meanwhile, in Ranchi, prices have escalated from Rs 25 to Rs 57.
The spike in onion prices can be attributed to the severe damage caused to the summer crop in Maharashtra due to unexpected rains in March. Additionally, around 30% of central agency stocks have been affected. Despite weak international demand for Indian onions and increased competition from Bangladesh, a significant price drop is not expected at this time.
The demand for high-quality onions is currently driven by seed companies. Once their procurement is complete, prices may decrease by 5 to 10 rupees per kg. Onion prices typically experience fluctuations during specific months due to crop cycles and market dynamics. The arrival of the new Kharif crop could potentially stabilize prices.
During the period from August to January, when Rabi onion stocks diminish and market arrivals are limited, there may be pressure on prices due to the demand-supply gap. The arrival of the new crop could alleviate this pressure, provided other factors like weather conditions, production levels, storage losses, and transportation costs remain favorable.