Onion prices unlikely to fall in near future

Onion prices unlikely to fall in near futureThe prices of onion are not expected to come down in the near future as post-cyclonic rains have reported damaged onion crops in Andhra Pradesh and Maharashtra.

The prices of onion once again shot up in retail markets across India. On Monday, one kg of onion was being sold for Rs 85 to Rs 90 in Delhi. The prices are now nearly 30 per cent higher from the average price of Rs 60 per kg recorded in Delhi last week.

Prices of onion have been oscillating between Rs 60 a kg and Rs 85 a kg for the last two months, despite the government measures like allowing imports and curbing exports of the eatable.

Traders are blaming limited supplies from key onion producing states like Maharashtra, Karnataka and Andhra Pradesh for the drastic increase in prices.

Rajendra Sharma, chairman of Agricultural Produce Marketing Committee at Azadpur vegetable market, said, "Prices are high because supplies have slowed down due to unseasonal rains at the time of harvesting. Rains have damaged the crop in key growing states."

The kharif crop of onion was ready for harvesting in Maharashtra, the biggest producer of onion, but unseasonal rains destroyed the crop, allowing prices to remain high.