Onion exporters warn of major shortage in onion supply; price hike from early March
onion supply until it harvests the next kharif crop, said industry representatives. This will mark a reversal from the current scenario with the country facing a glut in supplies of the bulb vegetable and stable prices amid an export ban.
The industry representatives warned of a 30% drop in rabi harvest, potentially leading to a spike in onion prices around Ramadan in early March.
Erratic monsoons in 2023, which caused deficient rainfall in Maharashtra, Karnataka, and several other states in peninsular India, have impacted production of key staple foods like pulses, sugar, and onions.
Tur output is expected to fall by about 13% over the previous year, which, according to industry estimates is expected to keep tur dal expensive for the consumers for the entire year till the next harvest arrives.
In a letter to the Union government, a group of leading onion exporters have cautioned the government about the consequences of allowing onion exports without adhering to a proper mechanism to control export volumes.
The exporters, who met government officials on Monday, claimed that exports of reportedly 300,000 tonnes of onions will result in prices soaring to Rs 35-40/kg at markets in Nashik district and to Rs 50-60/kg in other retail markets.
«We expect the onion prices and demand to increase considerably from the beginning of March due to increased demand of the Ramadan festival on one side and reduced arrivals of kharif crop and some gap in the rabi arrivals,» the exporters said, adding, «This year the rabi crop
