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In last one year, onion prices have risen by 28 per cent from Rs 25/kg in February 2023 to Rs 32/kg in February 2024.
Agricultural experts in the country are expecting onion prices to rise substantially during Ramadan in March 2024 due to acute supply of the bulb vegetable. This is because experts expect poor onion output in the current Rabi season, business daily The Economic Times has reported. Plus, onion output was lower during last year’s Kharif season as well. According to experts, the country is about to face acute supply of the bulb vegetable resultant of which they expect prices to go through the roof in coming days. In fact, the supply problem is so acute that experts have warned that prices might remain elevated right till October this year.
According to experts since there is going to be acute supply shortage, the light at the end of the tunnel will be visible only after next kharif onion output arrival in the market.
Currently, the stock available in the market is of previous year’s Kharif season which in itself is not enough. Plus, it is expected that this stock may last for maximum for more 15 days.
Talking about the current Rabi season in which the vegetable was sowed in November last year and will be harvested in April 2024, the experts believe output to be lower than previous year’s Rabi season by 30 per cent. Plus, they expect Rabi output to arrive only from April 2024, which in any case will not be enough to match high demand.
On Monday, it was reported that wholesale onion prices in the Lasalgaon Agricultural Produce Market Committee (APMC) had erupted 40 per cent due to low supply.
Lasalgaon APMC is the largest onion wholesale market in the country.
Currently, onion prices are ruling at Rs 32/ kg in the retail market. Albeit, prices have corrected substantially in the recent past after GoI imposed embargo on exports back in December, last year. Since that time prices have fallen by 75 per cent from Rs 56/kg in December 2023 to Rs 32/kg in February 2024.
When, compared to last year, prices are still up 28 per cent. And sadly, experts expect prices to go further up from current levels.
Onion export embargo is imposed till March 31, 2024. On Tuesday, February 20, 2024, Centre assured citizens it will not lift the ban before the set deadline.