According to data from the consumer affairs ministry, the retail price of onion touched ~63 per kg in Delhi on Tuesday on tight supplies and lower arrivals in wholesale markets. The current price is more than double the ~27 per kg at which onions sold in early August.
In major eastern Indian cities like Kolkata and Ranchi, on 28th November retail prices were around ~55 per kg. The spike in retail prices comes despite export restrictions announced by the Centre last week when a minimum export price of US$ 850 was imposed.
Due to a sharp drop in planting of the summer crop (Kharif 2017-18) which fell 29% year on year, onion prices are higher this year.
The lower planting has also led to lower arrivals in wholesale markets. According to the data from the National Horticulture Board, onion arrivals during October were 17% lower year on year.
President of the fruits and vegetable seller’s association in Delhi’s Azadpur mandi, Metha Ram Kriplani said, “Arrivals have nearly halved compared to normal due to lower production following heavy rains in parts of Maharashtra.”
Kriplani adds that the current wholesale prices of ~40-45 per kg is likely to soften by end December when the late Kharif crop hits the market.
The summer harvest contributes about 15% to India’s annual production of onions, with the late Kharif and Rabi crop contributing 20% and 65%, respectively. The Kharif crop which is planted between July and August is harvested between October and December in Karnataka, Maharashtra, Andhra Pradesh, Madhya Pradesh and Rajasthan.
Source: http://www.hindustantimes.com/
