Onion prices likely to stay firm till November despite Centre’s Rs 35/kg push
Onion prices will likely stay firm until November despite government sales. Inferior quality of stored onions and delayed fresh crop arrival are key factors. Global onion shortages are also supporting domestic price stability. The government's price control measures follow a significant wholesale price increase. The Kanda Express transports onions from Maharashtra to major cities.
Pune - Experts predict onion prices will remain stable until November, despite the central government selling them at ₹35/kg in Delhi starting Thursday. This move comes after wholesale prices at the Lasalgaon market in Maharashtra surged by 30% between August 17 and August 24. Retail prices have also surged to over ₹70/kg in various parts of the country.
The government's price control measures stem from concerns about the quality of stored onions and the delayed arrival of the kharif crop, which is expected to arrive more than a month later than usual. Strong export demand and uncertainty surrounding the southern Indian harvest further contribute to the stability of onion prices.
An onion exporter stated that inferior quality onions in both government and private buffer stocks, combined with the delayed kharif crop, good export demand, and global shortages, are all factors expected to maintain high onion prices. Meanwhile, global onion shortages are anticipated to support domestic prices.
The Ministry of Consumer Affairs has initiated retail sales of onions in Delhi, with the first Kanda Express carrying onions from government buffer stocks reaching the capital on Thursday. However, the Central Warehousing Corporation, responsible for handling the buffer stock, is encountering challenges in loading the railway rakes and trucks due to the difficult task of removing inferior-quality onions.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
