Onion prices surge 25% at Lasalgaon

Pune: Wholesale onion prices at the Lasalgaon Mandi have risen by 25% over the past week, despite the government's efforts to address the issue. Traders anticipate further price increases due to a delay in the southern India kharif onion crop's arrival, caused by late sowing. The government plans to begin selling buffer stock onions from early September.

This year, onion procurement is projected to be 25% lower than the targeted 200,000 tonnes, even with the government raising the minimum assured procurement price seven times during the season. Average onion prices reached ₹27 per kg on Wednesday, approximately 25% higher than ₹21.50 per kg on August 5, at the Lasalgaon Agricultural Produce Market Committee.

The best quality onions saw a jump to ₹30 per kg from ₹24 per kg during the same period. Rabi harvest onions, stored in March and April, are the primary source of onions for the country until October, with a small kharif crop from Karnataka, Telangana, and Andhra Pradesh supplementing this. The main kharif harvest from Maharashtra and Madhya Pradesh arrives in October.

Onion prices are expected to remain stable in the coming weeks. However, weather conditions during September will significantly influence the price trajectory, according to Danish Shah, a seasoned onion exporter from Maharashtra. Rainfall damaging the new crop from southern India could lead to upward pressure on prices, while good-quality new crops will help keep prices under control.

Traders also noted that kharif sowing in Maharashtra has been delayed due to a late monsoon onset, further emphasizing the importance of the southern crop for price stability. Despite no decline in rabi onion production and storage quality, this year's crop suffered globally due to erratic weather, affecting both Indian and international onions.