Prices for onions are likely to remain firm through Diwali, traders said. The vegetable is priced around Rs 60/kg in metro areas, including Delhi and Mumbai, amid speculation that crop damage caused by untimely rains could affect supplies.
As a result of excess moisture, prices of vegetables like cabbage and bottle gourd have also increased, along with onions.
Up until December, when start of the new crop is at its peak, weather will remain the most important factor influencing onion prices.
“There is a high level of uncertainty. If the weather continues to play spoilsport, then the prices can increase further. However, if we get favourable weather, then prices may remain stable at current levels till Diwali,” said HS Bhalla, a Delhi onion trader from the Azadpur APMC.
There hasn’t been a sharp rise in onion prices because the demand is still subdued.
“Demand for onions is less. Along with Maharashtra and Karnataka, there are also concerns about the onion crop in states like Gujarat, Rajasthan, and Madhya Pradesh, which may prevent any major reduction in onion prices,” Bhalla explained.
Lasalgaon market in Nashik district, which is currently Delhi’s main onion supplier, has more than doubled onion prices in the last month.
Lasalgaon market has seen an increase in wholesale price of 120% from Rs 14.75/kg on September 16 to Rs 33.40/kg on October 16.
According to the Bengaluru APMC, onion prices jumped from Rs 10/kg on September 8 to Rs 35/kg on October 13.
Market prices in Hubali, north Karnataka, where onions are being harvested in the kharif season, have increased from Rs 8.50/kg on September 16 to Rs 14.50/kg on October 16.
As a result of this move, onion buffer stocks have been targeted for release in states where prices are above the all-India average. In a press release, the ministry said 67,357 tonnes of the buffer stock created for 2021-22 have been released.
“Onion prices have cooled down by Rs 3-4/kg during the past couple of days. If there is no further rainfall in the coming days, then the prices can remain stable at the current levels,” according to Ajit Shah, president of the Onion Exporters’ Association.
