After the government lifted the ban on onion exports, its supply has decreased further. In most parts of the country, onion is being sold at Rs 50 to 60 per kg.
Onion prices are still intact at the level of 50 to 60 rupees. In fact, in Maharashtra, the country’s largest onion producing state, unseasonal rains in December, January and continuous increase in the price of petrol and diesel have created problems on the supply front. Due to this, the supply of new onion crop has reduced and prices remain high.
Onion supply decreased in Maharashtra’s mandis
The wholesale rate of onion in Lasalgaon, Maharashtra, the country’s largest wholesale onion market, has increased by 20 percent in the last ten days. Onion supply has also come down from the markets of South India. Supply from Gujarat, Madhya Pradesh is not coming too much. With this, the Center approved the export of onions in January.
Due to this, their prices have increased by Rs 1000 per quintal. Now the prices can come down after the new shipment of onion in March. According to the website of the Union Consumer Ministry, onion prices have increased by Rs 19 in Delhi, Rs 20 in Mumbai and Rs 15 each in Kolkata, Nagpur in the last one month.
Onion crop damaged due to unseasonal rains
Unseasonal rains during December 2020 and January 2021 destroyed the onion crop of farmers in Maharashtra. This has greatly affected the supply. Lack of supply is increasing the price of onion.
The supply of onion in the mandis of the country has reduced by about 40 percent. Because of this, onion has become expensive. Apart from this, exports have increased due to onion exports being approved. This has reduced the supply of onion in the domestic market. The other big reason for onions being expensive is the constant increase in diesel prices. Due to this, onion transportation has become expensive.
Nidhi Malviya is fun loving girl. She writes at NoobFeeds about various topics related to Finance, Technology, Business etc.