In the previous 15 days, the benchmark Lasalgaon APMC in Maharashtra has seen an increase in the wholesale price of onions of over 50%, primarily as a result of a decrease in the total seeded area. In the past week, the price has increased by 18%. On Tuesday, the average cost of onions at the Lasalgaon market was Rs. 38 kg, which represents a 58% increase from Rs. 24 kg two weeks prior.
Details on prices for onions have increased by almost 50% in the last 15 days, and they are predicted to continue rising until December
In less than ten days, the average wholesale pricing in Maharashtra increased to Rs 45–48/kg. Onions in the Lasalgaon market were priced on average at Rs. 38 kg on Tuesday, which represents a 58% increase from Rs. 24 kg two weeks prior.
As to Nandkumar Shirke, the Chairman of the Association of Onion Traders of Ahmednagar District, “the average price of onions in the Ahmednagar market has increased from about Rs 35/kg about around 10 days ago to Rs 45/kg now,” ET was informed.
According to the Economic Times, retail prices for onions have risen by 25–50% in the national capital region, where they are currently retailing for Rs 50–70/kg. On Wednesday, the top quality onions reached a maximum price of Rs 50/kg in Delhi and several Maharashtra markets.
Onions of medium and good grade cost Rs. 60 and Rs. 70 per kg, respectively, whereas onions of bad quality sell for Rs. 50 per kg. Until December, when the next kharif crop is anticipated to hit the markets, onion prices are predicted to rise.
This year, in mid-September, the onions that are typically harvested in October or November during the Kharif season began to arrive. Experts say that prices have begun to rise as a result of the 36% decrease in Maharashtra’s sowing area, which is now approximately 58,000 hectares.
In the southern states of Karnataka and Andhra Pradesh, senior authorities informed ET that the sowing of kharif onions was low since farmers had suffered losses the previous two years. In these states, rainfall that is below average has further decreased onion production.
According to the research, prices are predicted to grow until December, when the new kharif crop is due to be on the market following an almost two-month delay.
In an attempt to curb soaring costs brought on by a delayed and lighter seeding of the kharif crop, the Center levied a 40% levy on onions exported in August of this year. The levy is effective through December 31.
During that time, retail inflation for onions increased from 1.7% in June to 11.7% in July. Onions, like tomatoes, played a part in the dramatic increase in vegetable inflation that occurred last month, rising from -0.7% in June to 37.3% in July.
To enhance domestic availability of the kitchen staple, the Center also opted to raise the buffer stock limit from 3 lakh tone to 5 lakh tone. Moreover, National Cooperative Consumer Federation mobile vans and retail stores offered onions from the buffer at a discounted price of Rs 25 per kg.