Onion this Diwali as prices are expected to cross Rs 50 per kg mark in coming days. Currently, onion is retailing between Rs 30-40 in the national capital Delhi.
According to reports, wholesale prices of onion have gone up by 100 per cent at Lasalgaon Agricultural Produced Market Committee (APMC) over the past few days.
Traders claim supply of onions is expected to be lower this Diwali because of lower Kharif output as there is a draught-like situation in Maharashtra.
According to a report, the wholesale market in Maharashtra will remain closed during Diwali which will reduce supply further. The wholesale onion markets in Nashik district will remain closed for seven or eight days during Diwali break.
According to reports, the average wholesale price of onion jumped 100 per cent from Rs 10 per kg to Rs 20 per kg during last 10 days at Lasalgaon APMC, the benchmark market which sets onion prices for the rest of the country. Presently, onions are coming to the markets from the stored stocks.
The report citing traders mentioned that in the absence of rain for a substantially longer period coupled with increased heat waves are likely to reduce the Kharif crop size substantially.
“There was no rainfall even during Navaratri. Onion saplings have been wilting at some places, the size of the onion bulb will reduce, lowering the total output of the Kharif crop,” said onion exporter Danish Shah.
It is worth mentioning here that farmers have incurred 40 per cent storage losses on their stock which will have an impact on supplies. Now, on a daily basis, wholesalers are getting 50 trucks of onions against average supply of 125-150 trucks per day, another report said.>