Devanjana Mukherjee, Khabri Media
Onions are a staple ingredient in Indian cuisine, and such steep price hikes can significantly impact household budgets and the economy at large.
Pic: Social Media
The volatility of onion prices in India has been a longstanding concern, and it has once again come to the forefront as onion prices soar to an astonishing Rs. 80 per kg. Consumers in India are battling rising onion prices again as retail rates have touched sky high. The day-to-day rise in onion prices has buyers calling for government intervention to lower cost.
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The price of the onion is not sinking despite the imposition of export curbs in the supplying state of Maharashtra. The price in Delhi started surging on October 25, when the rates were Rs 40 per kg, which doubled by October 29, 2023.In the other states, the price ranges between Rs 41 to Rs 69 per kg.
This marks the second occasion in the past four months where onion prices have surged. The first spike occurred in August when the staple exceeded the Rs 100 mark. This, combined with the earlier substantial hike in tomato prices, is straining kitchen budgets and impacting harshly for families already grappling with financial difficulties.
Pic: Social Media
Several factors have contributed to the recent surge in onion prices such as:
- Monsoon Variability: Farmers heavily depend on on the monsoon, and erratic patterns can lead to fluctuations in onion production.
- Transportation Costs: The increase in fuel prices and other logistical challenges can result in higher retail prices.
- Stockpile Management: When onion stocks are not adequately maintained, it can lead to price instability.
- Crop Damage: The vulnerability of onion crops to diseases like downy mildew and purple blotch can lead to supply shortages.
According to official data, the all-India average retail prices increased by Rs. 3.40 per kg to 53.75 per kg on Tuesday within 24 hours. The reason behind sky high onion prices are due to a speculation, although there is 15-20 lakh tonnes of Rabi crop stock available at the source point. Moreover, the likely fall in fresh Kharif crop output and a two weeks’ delay stood as the sole reason for the sudden spike.
The kharif crop has started arriving in small quantities in mandis but the bigger batch will start coming in from the second week of November from other key growing states like Andhra Pradesh, Karnataka, and Maharashtra. The government will release buffer stock to increase availability and check prices until new crop hits the market.
Till date government has released 1.8 lakh tonnes of onions in the market and so far exported around 15 lakh tonnes till October 20 for this fiscal year. As per the official data, total export stood at 25 lakh tonnes in the fiscal year 2022-2023.
Onion is grown in three seasons — kharif, late kharif and rabi and therefore, it is only Rabi onion that is stored as the variety grown in this season has a longer shelf life and thus can be stocked for months.
