Onion Prices Surge Over 60% In Last Two Weeks: Report

Over the past two weeks, the average wholesale price of onions at the Lasalgaon APMC in Maharashtra has surged by nearly 60%, with an 18% increase in just the last week. In some markets, including Delhi and various parts of Maharashtra, the highest price for top-quality onions reached Rs 50/kg on Wednesday, according to a report by The Economic Times.

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It is anticipated that onion prices will continue to escalate until December, when the new kharif crop is projected to enter the markets after a delay of approximately two months.

“The average price of onions in Ahmednagar market has increased from about Rs 35/kg about around 10 days ago to Rs 45/kg now,” Nandkumar Shirke, chairman, Association of Onion Traders of Ahmednagar District, was quoted as saying by ET. Presently, the average wholesale prices in the majority of onion-producing districts in Maharashtra range between Rs 45 to Rs 48 per kilogram.

On Tuesday, the mean cost of onions at the Lasalgaon market stood at Rs 38 per kilogram, marking a 58% increase from Rs 24 per kilogram recorded a fortnight earlier on October 10.

On August 25, in response to the escalating prices resulting from delayed and reduced kharif crop sowing, the central government levied a 40% export duty on onions. Additionally, the government initiated the sale of onions acquired by Nafed in wholesale markets at rates lower than the current market prices in an effort to curb the price surge.

"The arrival of the stored onions has declined by about 40% during the last fortnight, from around 400 vehicles per day of 10 tonnes capacity each to around 250 vehicles. The prices are likely to stay firm as the arrival of new red onions from the kharif season would be delayed by about two months," said Shirke.

As per senior trade sources, the cultivation of kharif onions in the southern states of Karnataka and Andhra Pradesh has been limited due to farmers facing losses over the past two years. Inadequate rainfall in these regions has also contributed to diminished onion production. The nation's forthcoming kharif onion harvest will now primarily come from Alwar, Rajasthan.

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"However, even in Rajasthan, the expected crop is less than 40%," a trader was quoted as saying by ET.