Onion demand surged ahead of Eid with prices increasing by up to 50 percent

The price of onion in the country’s wholesale markets has increased by 50 percent in 15 days.

Onion prices have increased by 30 to 50 per cent in the last fortnight. The main reason is said to be lower supply. The special thing is that the demand for onion increased before Eid ul-Azha (Bakra Eid). On the other hand, traders have started maintaining stocks of onion. Traders hope that the central government can reduce its intervention to control prices. On the other hand, if we talk about government data, an increase of Rs 12 per kg has been observed in the price of onion in the country’s capital Delhi in 10 days.

How much did the onion increase?

The average wholesale price of onion in Nashik’s Lasalgaon Mandi on Monday was Rs 26 per kg, while on May 25 the same price was Rs 17 per kg. The price of good quality onion, which accounts for a small part of the total volume traded, has crossed Rs 30 in many wholesale markets in the state. The main reason for the recent price increase is the difference between supply and demand. The onion that has reached the markets since June comes from the stocks of farmers and traders. Farmers are offloading their stocks as they expect prices to rise due to a possible decline in the 2023-24 Rabi crop.

Why is the price of onion increasing?

However, due to the 40 percent export tax, exports are also declining significantly. Traders say domestic demand for onions is strong for Eid ul-Azha on June 17. Vikas Singh, an onion trader from Nashik, Maharashtra, said in a media report that there is strong demand for onions from Maharashtra, especially from the southern states. Horticultural Produce Exporters Association president Ajit Shah said in a media report that one of the main reasons for the rise in prices is that farmers and stockists hope that the central government can remove export duties. Based on this belief, they hold onions in the hope that prices will rise.

What do the government figures say?

According to the website of the Ministry of Consumer Affairs, there is an increase in onion prices. If we talk about June alone, an increase of Rs 1.86 per kg has been observed in the average onion prices. On May 31, the average price of onion was Rs 32.12 per kg. Which increased to Rs 33.98 per kg on June 10. In Delhi, the country’s capital, an even greater increase in the price of onion has been observed. On May 31, the government price of onion in Delhi was Rs 30 per kg. Which became Rs 42 per kg on June 10. This means that in the month of June, the price of onion in Delhi increased by Rs 12.

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