Onion prices have doubled in the wholesale market
Within these three months the wholesale onion prices have nearly doubled up which can be attributed to the decrease in supply. The supply chain was disrupted due to lockdown and further lack of proper storage has lead to the rotting of onion. Also heavy rains in South India, mostly Karnataka has damaged the local crop. These major disadvantageous situations have driven the farmers to go for distress sale. The pandemic has also wiped out demand from the hotel industry, one of the bulk consumers of the perishable bulb.
According to Economic Times, in Lasalgaon wholesale market, prices touched 16 per kg on Monday after rising for a fortnight. In some other markets, prices were even higher. Meanwhile, the National Agricultural Cooperative Marketing Federation (Nafed) has procured onions for price stabilisation. Nafed had set a target of procuring 100,000 tonnes of onions in 2020, which has nearly been met.