Daijiworld Media Network - New Delhi
New Delhi, Sep 21: Onion prices have risen sharply across India between June and September, with the average retail price increasing by more than 82 per cent in around three-and-a-half months, according to government data.
The average retail price of onions was Rs 29.50 per kg on June 1. By September 17, it had climbed to Rs 53.78 per kg, representing an increase of 82.3 per cent.
The rise has been even sharper in wholesale markets. The average wholesale price stood at Rs 22.60 per kg on June 1 and increased to Rs 46.20 per kg by September 10. It was recorded at Rs 45.68 per kg on September 17, meaning wholesale onion prices have nearly doubled compared with June levels.
The price rise has been attributed to reduced arrivals and crop losses in Maharashtra, one of the country's major onion-producing states. Supplies from Karnataka have also declined. Delayed arrival of the new Kharif crop has further tightened supplies in wholesale markets.
However, prices are expected to ease as fresh Kharif onions begin arriving in larger quantities.
Government measures to control onion prices
The government maintains a buffer stock of onions procured at relatively low prices and releases the stock in the market when prices rise sharply. In previous interventions, onions from the buffer stock have been sold at subsidised rates such as Rs 35 per kg to provide relief to consumers.
The government can also impose export restrictions, including export duties or bans, when domestic supplies become tight. Such measures are aimed at increasing availability in the domestic market and preventing further price escalation.
These interventions can provide some relief to consumers, although retail prices may continue to remain high depending on local supplies, transportation costs and market conditions. Frequent changes in onion trade policies can also affect the market.
Why onion prices rise during this period
Onion prices commonly come under pressure between August and September because of seasonal factors.
Demand generally increases during the festive period, including around Raksha Bandhan and Ganesh Chaturthi, while consumption can rise further ahead of other major festivals.
Heavy rainfall can disrupt harvesting, transportation and supply chains, resulting in delays in bringing onions to wholesale markets.
The crop cycle is another important factor. Stocks of the previous crop begin to decline around this period, while the arrival of the new Kharif crop takes some time. The resulting gap between old stocks and fresh arrivals can temporarily tighten supplies and push up prices.