Wholesale onion price at Lasalgoan in Maharashtra, Asia’s biggest market for this kitchen staple, has shot up by 70 per cent in just about a month — hitting its highest level for the month of July in the past two decades.
Prices in July usually tend to be higher because the supply goes down and the onset of monsoon season also affects the onion quality. The onion was being sold at Rs.25.50 per kg in Lasalgoan market on Friday, while the retail prices are in the range of Rs.35-40 per kg here in the national capital. Lasalgoan accounts for a bulk of the supply in various parts of the country, including Delhi region. The prices have shot up by 70 per cent, since June 27 when the government increased the minimum export price for the commodity.
The prices in both wholesale and retail markets have been rising in recent weeks due to sluggish supply of good quality onion in the wake of the crop getting damaged in storage across major growing states, including Maharashtra. Apprehending further increase in onion prices, the government has already increased MEP of the commodity to $425 per tonne and extended by another year the ban on hoarding. The Centre is also planning to import onion though in limited quantity.
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