Heavy monsoons combined with low production have pushed onion prices to nearly Rs 80/kg in places.
The crunch in onion supply has sent prices soaring across metros in India with rates seeing an increase of nearly Rs 30-40 per kg. Poor supply has pushed wholesale onion prices to a four-year high.
On Tuesday morning, onion prices in the retail market continued to move up and are being sold for Rs 75-80 per kg in Mumbai and Delhi in retail markets. The onion prices in the open market have increased drastically over the past week in several parts of the country including Delhi, Bengaluru, Mumbai, Patna, Varanasi and Lucknow. Retail onion prices have shot up in a week and stand at Rs. 56 per kg in Mumbai and Delhi, Rs. 48 per kg in Kolkata, Rs. 34 per kg in Chennai. In Delhi, apples are cheaper than onions in the wholesale markets.
A heavy monsoon that spoiled crops has caused a sudden spike in onion prices. The situation is expected to remain the same for at least a month. Meanwhile, Nafed director Nanasaheb Patil said : "Heavy rains in Southern states, Madhya Pradesh, Uttar Pradesh, Gujarat and Maharashtra damaged the crops and the new onion crop that comes in September has been delayed by a month."