Onion prices rise as crop shortage hits home

Since the start of 2023, onion prices have been in the range of Rs 900-1,000 /quintal, which had worried farmers. In order to help farmers, the National Agricultural Cooperative Marketing Federation (NAFED) and the Cooperative Consumers Federation (NCCF) had effected procurement of around 3 lakh tonnes of the bulb.

The present price rise, said Suresh Deshmukh, a commission agent at Dindori wholesale market in Nashik, was due to a smaller stock of onions arriving at the wholesale market. “This year, due to unseasonal rains earlier in the year, and the exceptionally high temperature farmers had reported above average storage losses,” he said.

Deshmukh estimated around 40 per cent of onions were lost in storage. Farmers had accelerated sales due to losses which had led to the price drop in the last few months.

The onion in question, is the rabi or summer crop which farmers plant in December-January and harvest after March-April. Due to low moisture content, this produce can be stored for a longer period of time. Farmers liquidate their stock in tranches, till the new crop arrives after September-October.

Bharat Dighole, president of Onion Growers Association, said present rates do not commensurate the cost of production as farmers have sustained heavy storage losses. “We feel this price will rise for some more time,” he said. Traders said prices can touch Rs 2,000-2,200/quintal mark if the quantity of arrivals remains the same.

Also due to delay in rainfall, sowing of kharif crop (sown in June-July and harvested post October) has also taken a hit in the country. Thus, till August 7, about 0.68 lakh hectares of kharif sowing has been reported, as compared with 0.79 lakh hectares on the same date last year. (Source: minutes of meeting of crop weather watch group dated August 7). At most consumer centres, onion prices have reportedly risen by Rs 5 to Rs 6 /kg in the last five months, with the bulb trading between Rs 25-30 /kg at most centres.