Onion prices are again burning a hole in Aam Aadmi’s pocket. The price of the bulb has gone over Rs 100 per Kg in the National Capital. In several other states, the price is over Rs 90. While the prices of onions touched Rs 80 per kg in August and September, prices have again shot up due to a shortage, triggered by unseasonal rainfall which has damaged crop in the main onion growing zones in Maharashtra.
As per reports, the average price of the bulb at the benchmark Lasalgaon wholesale market was at Rs 55.50 per kg. Traders fear that further spike in prices due to the high amount of damaged crops because of the unseasonal November rains. It is to be noted that rains have been battering the key onion growing zones over the last two weeks. Reports suggest that that extensive damage to onions was caused by the rains in Nashik, Ahmednagar and Pune.
While the government has claimed that the prices will moderate soon, experts believe that the sharp fluctuation will continue for another month until the delayed crop reaches wholesale markets. Official data from consumer affairs ministry shows that retail prices of Onion in Delhi shot up to Rs 80 per kg on Tuesday compared to Rs 55 on October 31.
“But this year the crop has been damaged in many parts of the country due to rains. There will be adequate availability of the crop by this month-end,” he added. Some farmers have already expressed concern over the rains as most of them are now selling old stocks since all-new onions have been damaged.
With prices now over Rs 100 in Delhi, it can be concluded that there has been a four-fold rise in onion prices during the last three months in wholesale markets. As a result, retail prices of onions have jumped sharply.
It is worth mentioning that earlier in September, in order to curb rising onion prices in the country, the Ministry of Commerce amended the export policy of onion. As per the notice, the export policy of onion was amended from free to prohibited till further orders. The export of all varieties of onions was prohibited with immediate effect.