Traders say onion prices are likely to remain steady until Diwali, as vegetable prices in metros, such as Delhi and Mumbai, hovered around Rs 60 per kg as speculation spread that crop damage caused by mansoon might hamper supply.
Due to heavy rainfall, tomatoes and other vegetables, such as cabbage and bottle gourd, have increased in price and onions. Traders predict that weather will continue to impact onion prices until December 2021, when a record amount of fresh onions will be arriving.
“There is a great deal of ambiguity.” HS Bhalla, an onion dealer with the Azadpur APMC (agricultural produce marketing committee) in Delhi, said prices might be constant until Diwali if the weather is good. If the weather remains to be a hindrance, costs may rise much further.
Wholesale onion prices have more than doubled in Nashik district’s Lasalgaon market, now the largest onion supplier to Delhi.
Lasalgaon market wholesale prices increased by 120 per cent from Rs 14.75 per kg on September 16 to Rs 33.40 per kg on October 16.
The Bengaluru APMC increased onion prices from Rs 10 per kg on September 8 to Rs 35 per kg on October 13.
Hubli market in north Karnataka, where the Kharif onion crop is being harvested, saw an increase in average prices from Rs 8.50 per kg on September 16 to Rs 14.50 per kg on October 16.
The Ministry of Consumer Affairs has starts disbursing onions from buffer stock in states with higher prices than the national average. In a press release from the ministry, the ministry reported that 67,357 tonnes of the 208,000 tonnes of buffer stock established for 2021-22 had been released as of October 12.
Over the last several days, onion prices have dropped by Rs 3-4 per kg. Traders say onion demand is still low, which has kept prices from rising too much if it does not rain more in the coming days,” said Ajit Shah, head of the Onion Exporters’ Association.
In addition to Maharashtra and Karnataka, there are also concerns about the onion crop in Gujarat, Rajasthan, and Madhya Pradesh, which could prevent any significant price reductions,” Bhalla said.