Onion prices rise by up to 76 per cent due to loss of income as a result of flood losses

Nasik, Ta. August 22, 2019, Thursday

Onion prices in agricultural mandis across the country have seen an increase of 5-7% in the last one month. Market sources said a sharp rise in the price of goods was down.

Onion supply has been affected due to flood situation in Maharashtra, Madhya Pradesh and Karnataka, the major producers of onion. According to data collected by the Nashik-based National Horticultural Research and Development Foundation, onion prices in Mumbai have risen from Rs 1.8 per kg to Rs 5 in the last one month.

At Lasalgaon, Asia's largest onion market, the onion price of onion on July 5 rose by 5 per cent on August 6 to Rs 1.8. Farmers are also increasing supply to make a profit due to the sudden rise in onion prices. Farmers have witnessed such high prices of onions over the past several years, the source said. In Ahmedabad, onion prices have gone up by 8.5 per cent. In Chennai, prices increased by 5 per cent to Rs 5 per kg.

The monthly revenue of onion in Lasalgaon market, which was one month ago, has now increased to 5 tonnes. Due to the floods, the season's early crop income from Madhya Pradesh and Karnataka has slowed down. This year, the sowing of common breeds, which was delayed in monsoon sowing, also started late. In addition, the kharif crop in Gujarat and Maharashtra has been damaged.

In June, when onion prices were calling around Rs 5 per kg, the government has raised a buffer stock of 5 tonnes. Farmers fear that if the government removes the stock from these stocks, then the prices will fall again, which they are currently selling at higher prices, sources said.

Generally, kharif season onion harvesting begins in late October. This year it is expected to have a three-week delay. Considering the festive season and sluggish income, onion prices are expected to remain around Rs 5-8 per kg until new goods start to come into the market.