Onion Prices Crash By 55% In a Week

The price of onions, which was burning a hole in the pockets of consumers, has dropped drastically by around 55% over the past week owing to arrival of the new crop and duty levied on exports. The new crop this winter is very good. It is reaching the market in large quantities, primarily from Ahmednagar, Nasik, Sangamner and Pune. While onion prices were still high, the National Agricultural Cooperative Marketing Federation of India Ltd brought in large quantities from Gujarat and sold them for just ₹12-15 per kg. Over the past week, onion prices have dropped to Rs 55 per kg and are expected to continue falling. Stockists who had hoarded onions, anticipating a price increase due to heavy rains, are now concerned about potential loses. The average wholesale prices at the benchmark Lasalgaon market plunged to Rs 16 per kg, down about 55% from Rs 36 per kg a week ago. Onion prices had crossed Rs 60 per kg in wholesale and Rs 80 per kg retail as prolonged excess rainfall had damaged and delayed the kharif crop.