Onion Prices Surge To Rs 80 Per Kg Nationwide Amid Massive Shortage | Check State-Wise Rates

While onion prices remained low in August, allowing retailers to maintain profits, several states are now facing shortages. This follows the failure of government measures intended to keep prices under control.

Price Rise Across Various States

Retail onions are being sold for Rs 50-55 per kg in Delhi-NCR, but in the open market they are selling for Rs 60-70 per kg. In some states, onion prices have surged to Rs 80.

The onion prices at Kanpur's Chakarpur in Mandi have dropped from 6.50 lakh per kg to 5 lakh per kg, causing wholesale prices to rise to 42-45 rupees per kg. Saurabh Pandey, president of the Chakarpur Mandi Vegetable Traders Association, said that prices have risen by approximately 10 rupees in the past three days alone.

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Limited quantities of onions are now arriving by truck from Shivpuri in Madhya Pradesh and Alwar in Rajasthan. The market will remain bullish until the new crop harvesting begins in several places. With approximately 15 truckloads of onions (300,000 kg) arriving daily from Nashik at Agra's Sikandra market, the wholesale price is currently hovering around Rs 40 per kg. A local trader, Manoj Kalra, says that if demand increases next week, prices may see some increase.

Prices of onions in Bengal have risen to Rs 70 to Rs 80 from Rs 30 to Rs 35 in the past two weeks. In Rajasthan, onion prices are steadily increasing, reaching Rs 50 per kg.

During the past 15 days, onion prices in Jammu have jumped to Rs 60 per kg from Rs 20 to Rs 25. In Dehradun’s Mandi, onions are Rs 60 per kg. In Haridwar's Jwalapur Mandi, onions are Rs 50 per kg.

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Recent Developments In The Market

To cope with the onion price hikes in India, the centre has strengthened its storage arrangements to ensure adequate availability of the vegetable in the market. For the first time this year, the Central Warehousing Corporation (CWC) has been entrusted with the responsibility of storing onions to improve their shelf life, Consumer Affairs Secretary Nidhi Khare said. Rejecting reports, Khare claimed that 30 per cent of the government's 1.21 lakh tonnes of onion buffer stock had rotted. "Nothing like that has happened. They are of good quality," she added.

On Friday, the first Kanda Express carrying 453.65 tonnes of onions from Nashik reached Delhi. The dedicated 21-waggon rake is part of the government’s effort to move buffer stock to major consumption centres. The onions will be sold at a subsidised rate of Rs 35 per kg in Delhi-NCR, with part of the stock also being sent to Chandigarh, Ludhiana and Jammu.

Reports said that the core issue is not the shortage of onions but heavy losses caused by unseasonal rain and rotting during storage.