- If the rains continue, onion prices may go up
- Crisil with reports that prices may rise
At present, the retail price is around Rs 30-40 per kg. In Maharashtra, one of the major centers of production, the crop cannot be transplanted due to rains. It is observed that this may cause the price to cross Rs 30 per kg. Chris points out that onion prices are likely to increase by more than 100 per cent this year as compared to 2018.
Hurricanes and Climate Change Problems Increase crop moisture. As a result, they cannot be stored for long. If earlier it could have been stored for a long time without any damage, now the condition is deteriorating quickly. Production has also declined.
In most households in India, onions are likely to make consumers cry again, and over time the onion and onion harvest may be delayed.
Crisil points out that the failure to harvest on time due to Hurricane Toukte and the fact that existing stocks will not last long will lead to a rise in prices. Irregular rainfall in August-September for the last two years was a setback for farmers. As it affected the onion harvest, the price was double that of 2018.
India consumes an average of 13 lakh tonnes of onions every month.
Onion is grown in three seasons in the country as it is in demand throughout the year. Maharashtra, Karnataka and Andhra Pradesh are the major onion producing states. About 75% of the total production comes from these states.
Meanwhile, Crisil says the government has taken steps to curb the rise in onion prices. Two lakh metric tonnes of onions will be stockpiled in the 2022 financial year. It currently holds about 90% of the total stock. The largest contributor is from Maharashtra. The government has also proposed to increase onion cultivation in Rajasthan, Haryana, Madhya Pradesh, Gujarat and Uttar Pradesh from 41,081 hectares to 51,000 hectares.