Onion prices have nearly doubled in a year.
The all-India retail price of onions increased 94.39% to Rs 57.85 a kilogram on November 29 from Rs 29.76 per kg a year ago, according to the government data.
This happened despite India continuing to be the world's second largest grower of onions and producing multiple crops a year.
How have onion prices moved in the past few months?
Onion prices started to climb in Maharashtra’s Pimpalgaon and Lasalgaon wholesale markets, Asia’s largest, in the second week of August.
However, they shot through the roof in October, just after the end of Navratri, crossing Rs 85 per kg in some markets.
After the government's intervention, the prices stabilised for a few weeks but have started increasing again after severe rainfall and hailstorm in some of the producing areas.
What has the government done to contain prices?
In August, the government imposed a 40% export duty on the export of onions after the prices started increasing. However, rampant under-invoicing of exports undermined the duty, prompting the government to scrap it and impose a minimum export price of $800 per metric tonne on onions between October 29 and December 31.
These measures were taken to maintain sufficient availability of the commodity for domestic consumers at affordable prices as the quantity of stored rabi 2023 onion was declining.
India exports onions to Bangladesh, Malaysia, the United Arab Emirates, Sri Lanka, Nepal and Indonesia.
The Department of Consumer Affairs has been disposing of onion from the buffer continuously since the second week of August in major consumption centres across the country and also supplied to retail consumers at Rs 25 per kg through mobile vans operated by the National