Pune : Despite the imposition of a 40% tax on onion exports and the enforcement of a minimum export price of $800 per tonne (approximately Rs 66,650.68), onion prices in India are on an upward trajectory. Quality onions are now fetching farmers between Rs 55 to Rs 60 per kilogram, and this price surge is anticipated to persist throughout the months of November and December.
The harvesting of late-planted onions is set to begin towards the end of December, and this is expected to contribute to market saturation, potentially leading to a reduction in prices. The current spike in onion prices can be attributed to a decrease in onion production due to adverse weather conditions.
Unusual and unseasonal weather patterns, including rain, hailstorms, and heatwaves, have significantly affected onions from the previous summer season, causing them to last for only about three and a half months. Consequently, the market is facing a shortage of onions.
The price per kilogram of quality onions varies across different regions, with rates ranging from Rs 39 to Rs 70 in various locations. Farmers typically receive payments ranging from Rs 30 to Rs 60 per kilogram, depending on the quality of the onions, from market committees. By the time these onions reach the retail market, the price can surge to Rs 50 to Rs 80 per kilogram, accounting for transportation costs, market committee taxes, as well as wholesale and retail trader profits.
Market analysts predict that moderation in onion prices is expected to occur in January, coinciding with the arrival of low-quality onions. During this period, farmers are projected to receive between Rs 55 and Rs 70 per onion.
Vilas Bhujbal, the former president of the Adte Association of Pune Market Committee, has suggested that the elevated prices are likely to persist throughout the months of November and December.
