Onion prices double in a month, markets predict further rise

The present trend, said Suresh Deshmukh, a commission agent operating out of Dindori’s wholesale market in Nashik district, was mostly due to the heavy rain in August. The monsoon rain, Deshmukh added has caused extensive damage to the almost market-ready kharif crop in Karnataka. He explained that the crop is planted in April and harvested in September well before the kharif of Maharashtra hits the markets in November.

Ironically, the country had reported a bumper rabi or summer crop as farmers grew the bulb on over 9 lakh hectares (lh) as against the 7.50 lh last season. The bumper crop had pushed down the prices since May, which had seen onion growers complaining of price crash. The coronavirus outbreak-induced lockdown had seen a dip in demand as industrial usage in terms of hotels and food processing industry had come to a grinding halt.

Demands both international and domestic markets have increased, which has seen prices rising in mandis. At retail markets, prices have risen in the last month with urban centres like Delhi, Mumbai and Pune have appreciated from Rs 20 to Rs 30 per kg. More appreciation is expected ahead as supply is likely to remain constrained in the days to come.