Onion Prices Surge by 15% as Delay in Kharif Crop Arrival Hits Retail Market

New Delhi: The retail price of onions in India has witnessed a substantial 15% increase, reaching Rs 39 per kilogram in the past two weeks due to delays in the arrival of the fresh Kharif crop from key onion-producing states like Maharashtra and Madhya Pradesh. Traditionally, the Kharif crop makes its way to the markets by Dussehra, but this year's delay is causing concerns among consumers and traders.

The onion prices are expected to remain elevated until the arrival of the fresh crops, which is anticipated to be around the end of November. The delay in harvesting and the subsequent market arrivals can be attributed to unfavorable weather conditions and deficient rainfall in Maharashtra, a significant onion-producing region.

Reports indicate that the Kharif crop in Maharashtra has suffered due to the adverse weather, contributing to the shortage and consequent price hike. This situation has had a cascading effect on markets across the country.

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Even at Lasalgaon, home to Asia's largest onion mandi (wholesale market), prices have surged significantly, with wholesale rates climbing to Rs 3,800 per quintal on Wednesday from Rs 2,350 per quintal just a fortnight ago. The rising prices are causing concern among traders, consumers, and policymakers alike.

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To address the issue and stabilize domestic prices, the Indian government had taken measures to curb onion exports earlier in the year. In August, a 40% duty was imposed on onion exports, aiming to ensure sufficient onion availability within the country.

The delay in the Kharif crop and the subsequent price increase in onions highlight the vulnerability of India's agricultural sector to weather-related challenges and the need for strategies to mitigate such risks. As the nation waits for the arrival of fresh crops to replenish the market, consumers and traders remain watchful of the onion price situation, which is of vital importance to everyday cooking in Indian households.

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