Retail onion prices in India are currently ranging between Rs 60 and Rs 80 per kilogram and are anticipated to remain high through the Diwali festival. This increase is primarily attributed to heavy rainfall in major onion-producing states, including Maharashtra, Karnataka, Telangana, and Andhra Pradesh, which has damaged crops and disrupted supply chains.
According to a report by The Economic Times, the rise in onion prices, along with increases in the prices of tomatoes and cooking oils, has contributed to a nine-month high in inflation rates for September, with food inflation expected to stay elevated in October.
In the Lasalgaon wholesale market of Nashik, onion prices have remained stable between Rs 45 and Rs 50 per kilogram for over a month. The government had anticipated a drop in prices coinciding with the kharif crop harvest, which is currently underway in several southern states. However, ongoing heavy rains have negatively impacted crop quality, resulting in waterlogged fields and delaying harvests by 10 to 15 days, further straining supply.
Vikash Singh, an onion exporter from Maharashtra, noted that the kharif onion harvest would be delayed in areas experiencing rainfall, potentially keeping prices stable for an additional two to three weeks.
