Onion prices have increased by 30-50% in recent days, due to slowed arrivals. The prices has shot up while demand has increased ahead of Eid-al-Adha (Bakra Eid).
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Onion Price Hike: The average wholesale onion prices at the Lasalgaon Agriculture Produce Market Committee (APMC) have increased by 20% due to a drop in supply compared to demand. The average wholesale onion price at Lasalgaon rose from Rs 2,130 per quintal on Wednesday (June 5) to Rs 2,550 per quintal on Saturday (June 15). According to APMC officials, onion arrivals have reduced by almost half at the APMC.
Onion, a staple ingredient in any meal in India, has seen prices increase by 30-50% due to delayed arrivals. The prices of the vegetable have surged as demand has risen ahead of Eid-al-Adha (Bakra Eid). Traders are currently holding onto their stocks, hoping for a relaxation in the central government’s price regulation efforts.
Onion Price Hike: The Main Reason Of Price Hike
The recent surge in costs is essentially due to supply-demand discrepancies. The onions we see in stores from June actually come from the stocks kept by farmers and merchants. The farmers, expecting the costs to shoot up in light of the predicted plunge in the 2023-24 Rabi crops, are refraining from selling their stash.
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Onion Price Hike: 40 Percent Export Duty
Traders have been observing a strong local interest for onions leading up to the Eid-al-Adha on the 17th of June. This is happening regardless of the subdued export activity due to a 40% export duty. Vikas Singh, who trades onions for a living in Nashik, Maharashtra, spoke about the particularly high demand from the southern states for Maharashtra’s onions.
“One of the main reasons for the prices to go up is that the farmers and stockists are optimistic that the central government may remove the export duty. Based on this assumption, they are holding onions expecting the prices to go up,” said Ajit Shah, president, the Horticulture Produce Exporters’ Association, quoted by the Economic Time.
