After tomatoes onion prices are witnessing a steep rise owing to supply disruptions. Onion prices, which should have been in the range of Rs 20-25 per kg during the current season, have surged to Rs 50-60 per kg in the city’s Kalamna wholesale market on Saturday. Many retail vegetable vendors in the city are selling onions at a price of Rs 70-80 per kg.
Wholesalers say that short supply of the agri-produce is pushingup the prices. Rain shortfall in many onion-growing regions has damaged the crop by almost 50 per cent. Thus we are not receiving onions as per our requirement creating a huge gap between demand and supply.
The Kalamna wholesale market saw arrival of only 22 trucks full of onions on Saturday against the requirement of 40 trucks. One truck carries about 300-400 bags of 50 kg each which is 18 to 20 tonnes of onions.
Another reason behind the shortage of the commodity is its increased export. For a few weeks, onions have been enjoying overwhelming demand in international markets and thus its export has gone up dramatically.
However, the Government had imposed an export duty of 40 per cent on onions in August. The step was aimed at restricting export of onions. But it did not help in curtailing the exports in a desired manner.
As per reports, the supply may streamline only after the arrival of new crops expected by December end.