Onion prices jump to Rs 27/kg at Lasalgaon amid delayed kharif crop arrival from South India

Pune: Wholesale onion prices at the Lasalgaon Mandi have surged 25% in a week, despite the government's efforts to sell buffer stock onions to control the price surge. Traders anticipate further price increases due to a delay in the kharif onion crop's arrival from southern India, caused by late sowing. The government aims to commence selling buffer stock onions from the first week of September.

This year, onion procurement is anticipated to be approximately 25% lower than the targeted 200,000 tonnes, even though the government has raised the minimum assured procurement price seven times this season. The best quality onion prices have reached ₹30 per kg, up from ₹24 per kg over the same period. Average onion prices have risen to ₹27 per kg, a 25% increase from ₹21.50 per kg on August 5 at the Lasalgaon Agricultural Produce Market Committee.

Kharif onions, procured from Karnataka, Telangana, and Andhra Pradesh, along with Maharashtra and Madhya Pradesh, supplement the rabi harvest, which is the main source of onions for the country until October. Danish Shah, a seasoned onion exporter from Maharashtra, stated that weather conditions in September, particularly rainfall, will significantly influence onion prices in the coming weeks.

If the new crop from southern India suffers due to weather damage, it could lead to upward pressure on prices. However, favorable quality of the new crop may help maintain price stability.