After Tomatoes, Onion Prices to Soar in September| Centre Releases Buffer Stocks

Although India has a large supply of onions, according to experts, the high proportion of poor-quality onions caused by this year's extreme summer heat has caused the price of good-quality onions to rise.

New Delhi: Onion prices have been low since the start of the year, but they have started to improve in the state’s wholesale markets. Traders say that this is due to a combination of storage wastage and reduced arrivals in markets. They predict that this trend may continue for the next few months. On Thursday, the average traded price of onions at Lasalgaon’s wholesale market was Rs 1,860 /quintal. This is a significant increase from the prices at the start of the month. The rise in prices is a relief for farmers, who have been complaining of low prices this year.

Central Government Decides To Release Onion Buffer

In order to keep prices in check until the arrival of the new crop in October and increased supply, the government said on Friday that it will release onions from its buffer stock of 300,000 tonnes. Prices for onions have risen sharply recently. In Maharashtra’s Lasalgaon mandi, wholesale prices have increased to $1,700 a quintal from $1,370 a week ago. According to data from the price monitoring office of the consumer affairs ministry, retail prices are averaging around 30 per kg. Fears of a future shortage have caused prices to rise, as per the Mint.

Since the beginning of 2023, onion prices have ranged between Rs 900 and Rs 1,000 per quintal, which worried farmers. Nearly 3 lakh tonnes of the bulb were purchased by the Cooperative Consumers Federation (NCCF) and the National Agricultural Cooperative Marketing Federation (NAFED) to help farmers, a report in the Indian Express said.

What Do The Experts Say?

Although India has a large supply of onions, according to experts, the high proportion of poor-quality onions caused by this year’s extreme summer heat has caused the price of good-quality onions to rise, according to a report in The Economic Times (ET).

The onion in question is the rabi crop, which is planted in December-January and harvested after March-April. This crop has low moisture content and can be stored for a longer period of time. Farmers sell their stock in batches until the new crop arrives in September-October.

What Do The Farm Unions Say?

Bharat Dighole, president of the Onion Growers Association, said that the current prices do not cover the cost of production, as farmers have sustained heavy storage losses. He expects prices to rise for some more time. Traders say that prices could reach Rs 2,000-2,200/quintal if the quantity of arrivals remains the same, the report in Business Standards said.

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