After Tomato, Why Onion Prices Are Also Rising Despite Bumper Supply

Tomato crop has been damaged across the country due to excessive rains. There was a huge decline in the production of tomatoes. Tomatoes became expensive due to the supply getting affected. Its price has registered an increase of more than 300 percent.

Now despite the bumper supply, onions have also become expensive. Within the last one month, a jump of 28 per cent has been recorded in the price of onion. Experts are trying to understand why onion prices are rising despite bumper arrivals in mandis.

28% increase in price since July

This has been revealed in the data of Agmarknet. According to Agmarknet, the price of onion in Lasalgaon, Asia's largest vegetable market in Nashik, Maharashtra, was Rs 1,340 per quintal on July 8, which has increased to Rs 1,725 per quintal in the month of August. Whereas, the arrival of onions in the mandis has increased as compared to the month of July. Despite this, the prices have increased by 28 percent.

Between July 1 and August 7, 22.33 lakh tonnes of onions arrived in the yards of the Agricultural Produce Marketing Committee (APMC), which is a record. At the same time, during the same period a year ago, only 18.25 lakh tonnes of onions had arrived in the yards. But, despite the increase in supply, the prices of onions have increased, which is a matter of concern in itself. 

 

Record breaking onion supply 

If we look at the arrivals from April 1 to August 7, then information is available about the record breaking onion supply in APMC yards across the country. The data of the Ministry of Consumer Affairs shows that the prices of onions have increased at the rate of 5 percent per month. While it is increasing at the rate of 15 percent annually.

Prices have increased by Rs 3-4 per kg in a week 

At the same time, experts say that due to the increase in domestic demand, an increase of Rs 3 to 4 per kg was recorded in onion prices last week. Whereas, President of Horticulture Produce Exporters Association Ajit Shah says that it may take one to two more weeks to know why onion prices have increased. 

Vikas Chaudhary, an onion exporter from Nashik, said onion prices have increased in the last two weeks. He said that good quality onions are not coming in the mandis. It is possible that due to this also the prices of onions would be increasing. 

Onion stock damaged due to rains in Maharashtra

President of Agri Commodities Exporters Association (ACEA) M Madan Prakash said that it seems that the onion stock has been damaged due to the rains in Maharashtra in April-May. Due to this, the onions kept in the stock got spoiled and its quality got affected. At the same time, Agmarknet data shows that the current onion prices are at par with the rates in 2021. But still less than in 2017.