India: Fresh onion crop no relief for prices
Despite fresh onions arriving during late October, onion prices have remained the same, or even incr…Despite fresh onions arriving during late October, onion prices have remained the same, or even increased in some cases. Wholesalers had previously attributed the price rise to insufficient supply, with some claiming that big players in the region have been manipulating prices. This as also compounded by farmers then withholding their produce waiting for prices to improve.
Onion prices have only been increasing for the last 10 to 12 days. On Tuesday, onion prices were between Rs35 to Rs40 a kg in the local markets, almost 70 per cent to 80 per cent more than mid-October rates.
Onion prices that had touched a high of Rs60-70 per kg in August and September, had seen reduction in mid-October when suppliers from Solapur, Gulbarga and other parts of Karnataka started supplying onions in Jadhavwadi wholesale market here. During that period, prices were between Rs15 to Rs20 per kg in retail market.
"The city's onion demand is 30 tonnes per day, but we are receiving only 22-25 tonnes. The gap in demand and supply has pushed the prices up significantly. Suppliers from Solapur and Gulbarga have stopped providing onions to Aurangabad after local farmers came forward. However, the recent deficit rainfall in the region has brought down onion production," said Rambhau Perkar, a wholesaler based from the Jadhavwadi market.