Onion prices to remain high in Diwali due to heavy rains, damaged crops, delayed harvest

The rising prices of onions, tomatoes and cooking oils caused September 2024 inflation figures to hit a nine-month high of 5.49% and this trend may continue

Published on: Oct 23, 2024, 12:57:17 IST

By HT News Desk | Edited by Abhyjith K. Ashokan

Prefer HTon Google

Share via

Copy link

Onions will remain expensive through Diwali due to incessant rainfall in Maharashtra, Karnataka, Telangana and Andhra Pradesh which damaged crops and delayed harvests by 10 to 15 days, according to an Economic Times report.

A labourer spreads onions for drying after rain, in Chikkamagaluru, Karnataka, Friday, Oct. 18, 2024 (PTI)

Also Read: Meta suspends Threads account of college student who tracks Elon Musk and Mark Zuckerberg's private jets

What are the current prices of onions?

The retail prices of onions are currently at ₹60-80/kg, while the wholesale prices in Nashik have been in the range of ₹45-50/kg for more than a month.

The rising prices of onions, tomatoes and cooking oils, were what led September 2024 inflation figures to hit a nine-month high of 5.49% and this trend may continue in October as well, according to the report.

This came after inflation had eased to a five-year low of 3.65% in August.

The food inflation separately increased from 5.66% in August to 9.24% in September.

Also Read: Netflix updates its company culture deck, gets pushback, Co-CEO explains it

"The harvest of the kharif onions would be delayed in the areas that have been getting rainfall, which could keep the onion prices firm for at least two to three weeks," the report quoted Vikash Singh, an onion exporter from Maharashtra as saying.

In response, the government has started retail sales of onions from its buffer stock to try control the prices, even using the 'kanda train' to transport onions from Nashik to Delhi to reduce the transport cost and increase supplies in north India, according to the report.

Its not just with vegetables. Even edible oil prices rose in September for the first time due to an increase in import duty since India imports almost 60% of its cooking oil, with palm oil having the highest share and its prices also surging globally.

Also Read: Tim Cook visits China for 2nd time this year. Is Apple worried about sales in the country?

ABOUT THE AUTHOR
HT News Desk
Follow the latest breaking news, major developments and agenda-setting stories from India and around the world with the newsdesk at Hindustan Times. Operating round the clock, the desk brings together experienced editors, reporters and correspondents to deliver fast, accurate and contextual reporting across subjects that influence public policy, governance, business, society and international affairs. The HT News Desk covers politics, elections, government policies, the economy, business and markets, science and technology, the environment, law and order, infrastructure, education, climate issues and geopolitics, while closely tracking developments across states, institutions and global capitals. The team also leads coverage of major breaking news events, policy announcements, court proceedings, natural disasters, public emergencies and significant international developments. Reports published by the newsdesk are based on information gathered from reporters on the ground, official statements, government agencies, court records, regulatory filings, recognised institutions and other authoritative sources. Stories undergo editorial scrutiny and verification processes to ensure accuracy, fairness and relevance, and are updated as events evolve and additional information becomes available. Whether covering a key political decision in New Delhi, an economic policy shift affecting millions, a landmark court ruling or a major global event, the HT News Desk aims to provide readers with reliable, fact-based journalism that delivers not only the latest developments but also the context and analysis needed to understand their wider implications.Read More

Stay updated with the latest Business News, stock market updates, petrol and diesel prices, gold and silver rates, income tax updates and major developments from India and across the world.