After tomato, onion prices inch up amid lower sowing
All India wholesale consumer price of onion stood at ₹2,068.51 per quintal on August 3, up from ₹1,893.56 on July 3. Year on year, the price has increased 4.86%, data from the consumer affairs ministry show.
«Onion prices are expected to firm up as lower output is expected from the kharif crops since monsoon rains have not been adequate in Nasik, Pune and Ahemdnagar districts,» said Nikhil Sule, an onion farmer from the area. Area under onion farming had reduced in the last rabi season as well, according to a Crisil report that estimated the acreage to be 3-5% lower than the previous year, resulting in «approximately 6% lower output on year».
The rating agency attributed the fall in rabi acreage to «25-27% lower realisation witnessed by farmers in the previous season». A senior official from the Ministry of Consumer Affairs, Food and Public Distribution, however, said the central government has procured a buffer stock of 300,000 tonnes this year, 20% more than last year.
«This stock will come in handy for interventions when the prices go up,» the official said. The person attributed the slight increase in prices in recent weeks to the upcoming festive season, and said that retail prices of onion will not go beyond ₹40 per kg this year.
In 2022-23, the government had maintained 251,000 tonnes of onion as buffer stock. The buffer stock is maintained under the Price Stabilisation Fund (PSF) to meet any exigencies in case rates go up significantly during the lean supply season.
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