Drought impact: Onion prices skyrocket

Onion is being sold at over ₹60 a kg in the retail market of Bengaluru for a week now

Published - October 29, 2023 09:53 pm IST - Bengaluru

Onions being sold at the APMC yard in Bengaluru.

Onions being sold at the APMC yard in Bengaluru. | Photo Credit: File photo

Not just avarekai, but several other crops, especially onions, have also been affected by drought in the State. As severe crop loss has been reported from Chitradurga, the major onion-growing belt in the State, the prices of onions have skyrocketed in the market. Onion is being sold at over ₹60 a kg in the retail market of the city for a week now. 

“During this time of the year, in a normal year, the Yeshwantpur APMC yard receives over 1,000 loads of onions from Challakere in Chitradurga every day. But there has been widespread crop damage due to drought and the arrivals are less than 100 loads a day, which is less than 10% than usual. This has pushed up the prices of onions,” said Ravi Kumar of Bangalore Potato and Onion Traders’ Association. He said even supply from Maharashtra had reduced also a trickle when compared with previous years. 

However, the quality of onions available now in the market has improved many folds when compared with that of those arriving in the previous month. “The new onions are red and are of very good quality. For over a month now, the only available onions were old onions, with their skin peeled out. Most of them had also sprouted already,” Ravi Kumar said. The old ‘peeled out’ onions are still available in the market for lower prices. 

Based on a prediction in July–August that the price of onions will skyrocket this season, the Union government is implementing several measures to keep it in check, including one on Saturday. The Union government has fixed a minimum export price for onions at $800 per tonne till December 31. This is a non-competitive price and will discourage exports, industry insiders said. “This move may lead to farmers dumping the crop they are holding in the market, which may bring a correction in the prices soon. The next week will tell us how this pans out,” a senior procurement officer with a chain grocery store in the city, said.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.