After tomato, onion prices likely to rise in coming days. Here's why
₹60-70 per kg in September due to tightened supplies, a report said. "The supply-demand imbalance is expected to reflect in onion prices towards end-August. As per our ground interactions, prices are expected to show significant increase from early September in the retail market, reaching up to ₹60-70 per kg during the lean patch.
However, prices will remain below the highs of 2020," according to the report by Crisil Market Intelligence and Analytics. According to PTI, the report stated that owing to reduced shelf life of rabi onion by 1-2 months and panic selling in February-March this year, rabi stocks in the open market are expected to decline significantly by the end of August instead of September, extending the lean season by 15-20 days, which is likely to expose the market to tightened supplies and high prices. Meanwhile, a report in Hindustan Times stated that Farmers have reported a “lot of damage to stored onions" because of heavy rain over the past month, which has “decreased supplies", Narendra Wadhwane, the secretary of Lasalgoan agricultural market committee, said on Tuesday.
“The government is monitoring onion demand and supply as we do in case of 22 essential items across 536 points across the country. We have enough stocks to intervene in the market and there is no concern," a government official said to Hindustan Times. But analysts say a pricey spell is on the cards.
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