Onion prices soar in Maharashtra

Prices of onion have started to increase as the season of red onion is coming to an end. Moreover, the arrival of summer onion in the market is slow.

Onion prices in India have increased to INR 1,000 per quintal. The prices have been increasing since the beginning of February. This is because of the delay in arrivals of the late kharif crop. As a result of this, exports have also been impacted. The price of onion from India is far higher than what is far greater than what is available in the global market.

Several parts of Maharashtra received moderate rainfall in the first week of January, which is unusual for that time of the year. Onion-growing areas such as Nashik received over 8 mm of rainfall. Last month, unseasonal rains have damaged the kharif onions on the field.

Arrivals of the bulb crop from Asia’s largest onion market, Lasalgaon, is almost halved. From an average daily inflow of 22,000-25,000 quintals, it has come down to 11,978 quintals on Monday, February 8. The modal price is hovering around INR 3,500 per quintal compared to INR 2,651 in January-end. The average retail rate in the major Maharashtra markets is about INR 50-60 per kg.

The onion was retailing at INR 44 a kg in Delhi and INR 50 in Mumbai on February 4, according to the Ministry of Consumer Affairs. On January 30, the price of onion was INR 39 in Delhi market and INR 43 in Mumbai.

According to farmers and traders, late kharif produce is coming to the market and this stock will end soon. The situation will remain the same till the new summer crop hits the market in 2-3 weeks.

The government had banned exports in September due to price escalation before Bihar elections. After repeated follow-up, the Central government lifted the export ban on all varieties of onions with effect from January 1, 2021. Now with the increased prices, there are few takers for onions from India.