Onion prices saw a remarkable jump, hitting an eight-month high on account of a sharp increase in demand by stockists in both, domestic and overseas markets amid reports of low arrivals in the country’s major mandis.
Data compiled by the National Horticultural Research & Development Foundation (NHRDF) showed that the model price of onion in Maharashtra’s Lasalgaon mandi almost doubled to Rs 8.70 per kg, from its earlier low of Rs 4.50 per kg.
Prices of agricultural commodities usually increase around this time on account of supply disruptions due to rain and a sudden spurt in demand from stockists, ahead of a festive season including Diwali and Dussehra celebrations.
Two years ago, onion prices had hit the record high of Rs 80 a kg in the wholesale market, while rates had gone up to Rs 100 a kg in retail markets. The spike in prices prompted the government to allocate Rs 500 crore for the creation a buffer stock. Consequently, government agencies like the Small Farmers’ Agribusiness Consortium (SFAC) and the National Agricultural Cooperative Marketing Federation of India (Nafed) accumulatively procured nearly 30,000 tonnes of onion during the last season. Read More