Onion prices skyrocket as supply disrupts due to widespread rains

Mumbai, Ta. 25 August 2020, Tuesday

Onion prices have almost doubled in the last three months. Onion prices have risen in the wholesale market in South India due to heavy rains, lockdowns, supply disruptions and shortage of goods.

In Lasalgaon wholesale market, the price of onion has gone up to Rs 15 per kg. Prices in other markets are even higher. Lack of farm labor was also becoming a concern for farmers.

The price of good quality onions is hovering around Rs 50 per kg due to heavy rains, said a local trader.

The National Agricultural Cooperative Marketing Federation (NAFED) has set a target of purchasing one lakh tonnes of onions in the current year.

The target was set to maintain price stability, NAFED sources said. The target is almost complete.

Due to the lockdown, the demand for onions from hotels has come down drastically and the farmers were frustrated and sold their produce, which has now disrupted the supply of onions. Farmers do not specialize in onions as they spoil quickly.