Drought-like conditions in Maharashtra could squeeze the supply of key kitchen staples such as onions, pulses, sugar, and fruits and vegetables, pushing up their prices and threatening an inflationary spike. The state is a key producer of these farm items with a substantial share in total output.
Reservoir levels in the state are currently 20% lower than they were last year at this time with the rain having been patchy.
Rabi season onion sowing is set to drop in Maharashtra due to the shortage of water. The production of tur and sugar is already set to drop while wheat and chana sowing also signal lower output.
Onion prices already high
«It is for the first time in the last six-seven years that I had to return nearly 50% of the onion seeds of most brands to the companies,» said Mukhesh Jaybhaye, a seeds dealer in Nimon, Sangamner.
«Lack of enough water has forced farmers to reduce the area planted under onions.»
According to the India Meteorological Department (IMD), while overall rain in Maharashtra during the monsoon was normal, it was deficient in many regions such Marathwada, Madhya Maharashtra and North Maharashtra.
Rain in the rabi season from October 1 to November 15 has also been in the «large deficit» category.
Lower onion sowing can hit supplies next year. Onion prices are already running high, lifting retail inflation in the kitchen staple to over 42% in October.