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Onion prices up 50% in last 10 days, high demand, low supply to blame

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Onions make farmers, common people cry, yet again
  1. Onion prices in the national capital region have witnessed a significant increase of 25-50%, causing the essential commodity to retail in the range of Rs 50-70 per kilogram.
  2. The price variation depends on the quality of the onions, with lower quality onions retailing at around Rs 50 per kilogram, medium-quality onions at Rs 60, and good-quality onions at Rs 70 per kilogram.
  3. Mother Dairy, a popular retail outlet, raised its onion prices from Rs 49 per kilogram to Rs 56 per kilogram in Noida and Rs 60 per kilogram in Delhi.
  4. The price increase is attributed to factors like a 36% reduction in the total sown area for onions in Maharashtra, which has led to a lower supply. However, subdued demand during the Navratri festival has somewhat prevented a steeper rise in prices.
  5. Onions harvested during the Kharif season usually come to the market around mid-September. Despite higher prices in Maharashtra’s producing regions, the price surge has been somewhat mitigated by lower demand during Navratri.

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