Pune – After almost trippling, Onion Prices fall drastically

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Ritika Bhoora

As reported earlier, onion prices had almost trippled in a span of 17 days from October 1 to October 17. After a sudden increase, Onion prices have started to fall as wholesale rates have dropped significantly in the last few days. According to Market committees the sudden fall in rates is due the arrival of the new Kharif crop in some parts of the country and the pressure of increased prices on traders.

Due to drought-like conditions in large parts of the state, the average price of onions at Lasalgaon’s wholesale market had climbed from Rs 8.75 per kg to Rs 21.51 per kg between October 1 and 17. Earlier the average retail price of onions had fallen to Rs 15-13 per kg, but on Thursday it dropped to Rs 10.19 per kg in Lasalgaon. The drastic drop in prices has taken the markets by surprise and led market committees to believe that this was due to undue pressure on the traders to ensure prices do not cross a certain threshold level.

Until now, the onions being sold in the market were the rabi or summer onions, but with the arrival of the Kharif crop in markets of Karnataka, Madhya Pradesh, Rajasthan and parts of Maharashtra , prices have started to drop.

However as the crop producing areas of Nashik and Marathwada are facing severe drought the yield of the Kharif crop is low. Water Crisis may also affect the yield of the rabi crop of Onions.