Onion trade in the country suffers from classic price volatility, a term used for regular patterns of wild swings in prices. It is caused mainly because of supply-disrupting factors like extreme weather, high losses from inadequate or improper storage or frequently shifting production levels.(PTI File)
Onion trade in the country suffers from classic price volatility, a term used for regular patterns of wild swings in prices. It is caused mainly because of supply-disrupting factors like extreme weather, high losses from inadequate or improper storage or frequently shifting production levels.(PTI File)

Rain, delayed harvest push up onion prices

On Monday, wholesale rates in Lasalgaon, Asia’s largest onion trading hub in Maharahstra’s Nashik, shot up to Rs 6,200 a quintal (100 kg) for some varieties, from Rs 4,700 on Thursday
By Zia Haq
PUBLISHED ON OCT 20, 2020 11:33 PM IST

New Delhi The price of onions has increased sharply in several cities this week, despite the government’s ban on exports imposed last month, as a rain-induced delay in the ongoing summer harvests exacerbated supplies.

On Monday, wholesale rates in Lasalgaon, Asia’s largest onion trading hub in Maharahstra’s Nashik, shot up to Rs 6,200 a quintal (100 kg) for some varieties, from Rs 4,700 on Thursday, the last trading day of last week, said Prakash Kumawat, an official of the Lasalgaon agriculture produce market committee (APMC).

Consequently, retail prices in cities such as Pune, Guwahati and Patna rose to Rs 70, Rs 65 and Rs 60 per kg respectively, up from last week’s prices of Rs 40 to Rs 50, according to market data on Monday.

“Rains over the past week in Nashik and Malegaon in Maharashtra and parts of Telangana and Andhra Pradesh have either damaged crops or delayed harvests,” said Sudin Tarle, another official at the Lasalgaon wholesale market.

Since the bulb is a common base ingredient of most Indian dishes, and therefore widely consumed, consumers are quite sensitive to a rise in onion prices as compared to many other commodities.

Analysts point to a familiar pattern in India’s onion-price spirals. Retail rates soar every alternate year or so, usually at this time of the year. It’s not uncommon for prices to crash either.

Onion trade in the country suffers from classic price volatility, a term used for regular patterns of wild swings in prices. It is caused mainly because of supply-disrupting factors such as extreme weather, high losses from inadequate or improper storage or frequently shifting production levels, all of which can cause supplies to go from surplus to scanty in a matter of weeks.

The reasons for the current spell of high prices are not very different from those during earlier inflationary periods. While existing stocks from this year’s winter crop have been nearly exhausted—as they are usually are, at this time of the year— fresh harvests have been disrupted.

“Onion prices will remain elevated during the festive season. The full year onion output will likely drop by at least 10-15% due to weather-related damage to both the winter and summer crop,” said Abhishek Agrawal of Comtrade, a commodities trading firm.

On September 15, the government banned exports of all varieties as a precautionary step since domestic supplies showed signs of depleting due to a bad winter crop and brisk exports. According to official trade data, the country exported $328 million worth of fresh onions and $ 112 million worth of dried onions in 2019-20. Between April and July 2020, exports of onions to neighbouring Bangladesh soared 157.7%.

The government also banned onion exports in 2019 on September 29, 2019, after a bad crop crimped output. In December that year, prices soared to Rs 80 per kg in the national capital. The government lifted the ban on March 15, 2020 before re-imposing it this September.

“Prices will stabilise when the late kharif crop is fully harvested. The government is monitoring prices and stocks. Steps like the export ban were initiated well in advance in anticipation of a price rise. If needed, the government import will resort to imports,” said a senior official of the consumer affairs ministry, requesting anonymity.

SHARE THIS ARTICLE ON
app
Close
All information were made available at ground level first, the health minister tweeted on Wednesday.
All information were made available at ground level first, the health minister tweeted on Wednesday.

'Obviously': Minister on whether beneficiaries were aware of Covaxin fine print

Written by Poulomi Ghosh
UPDATED ON JAN 20, 2021 05:41 PM IST
Covaxin beneficiaries were made aware of all information, the Union health minister said again on Wednesday.
Close
Representational image. (HT Photo)
Representational image. (HT Photo)

Those excluded from Assam NRC can vote if their names are on electoral rolls: EC

PUBLISHED ON JAN 20, 2021 05:37 PM IST
Around 1.9 million people were left out of the updated NRC published on August 31, 2019, as part of a process to identify and deport alleged undocumented immigrants from neighbouring Bangladesh
Close
Antony J. Blinken. (REUTERS)
Antony J. Blinken. (REUTERS)

India a ‘bipartisan success story’: Biden’s pick for secretary of state

PUBLISHED ON JAN 20, 2021 05:34 PM IST
Antony Blinken, the nominee for the post of secretary of state, said China is the “most significant challenge” to the US
Close
Sebastian Almeida with his new collection of guitars. (HT PHOTO)
Sebastian Almeida with his new collection of guitars. (HT PHOTO)

Goan guitarist rebuilds collection of rare guitars he lost in fire two years ago

By Gerard de Souza
UPDATED ON JAN 20, 2021 05:25 PM IST
  • Sebastian Almeida's collection now stands at 82 guitars, 20 more than what he last had when he lost it all in the fire.
Close
Representational Image.
Representational Image.

CBI arrests its DSP, inspector in bribery scam within agency

By Neeraj Chauhan
UPDATED ON JAN 20, 2021 05:10 PM IST
As part of the scandal, crucial case related information and documents were allegedly being leaked since 2018 to individuals/companies being investigated for bank frauds
Close
Prime Minister Narendra Modi addresses during the release of financial assistance of around <span class='webrupee'>₹</span>2691 crores to 6.1 lakh beneficiaries in Uttar Pradesh, under Pradhan Mantri Awaas Yojana - Gramin (PMAY-G) through video conferencing, in New Delhi on Wednesday. (ANI Photo)
Prime Minister Narendra Modi addresses during the release of financial assistance of around 2691 crores to 6.1 lakh beneficiaries in Uttar Pradesh, under Pradhan Mantri Awaas Yojana - Gramin (PMAY-G) through video conferencing, in New Delhi on Wednesday. (ANI Photo)

'Solid partners off field': Modi's tweet to Australian PM after historic win

By hindustantimes.com | Edited by Poulomi Ghosh
UPDATED ON JAN 20, 2021 05:11 PM IST
"Formidable competitors on the field and solid partners off it" is how PM Modi sees the relationship between India and Australia.
Close
BJP leader Suvendu Adhikari gestures during a roadshow from Tollygunge to Rashbehari in Kolkata, West Bengal( Samir Jana / Hindustan Times)
BJP leader Suvendu Adhikari gestures during a roadshow from Tollygunge to Rashbehari in Kolkata, West Bengal( Samir Jana / Hindustan Times)

News updates from HT: Suvendu Adhikari's new challenge ahead of Bengal elections

By hindustantimes.com, New Delhi
UPDATED ON JAN 20, 2021 04:57 PM IST
Here are today’s top news, analysis and opinion. Know all about the latest news and other news updates from Hindustan Times.
Close
Partho Dasgupta (centre), the former chief executive officer of BARC India and key accused in the Television Rating Points (TRP) manipulation scam. (HT Photo)
Partho Dasgupta (centre), the former chief executive officer of BARC India and key accused in the Television Rating Points (TRP) manipulation scam. (HT Photo)

TRP scam: Mumbai court rejects bail plea of ex-BARC CEO

PUBLISHED ON JAN 20, 2021 04:38 PM IST
The crime branch alleged that Partho Dasgupta had misused his official position and manipulated TRPs of certain news channels to benefit Republic TV and R Bharat channels
Close
Representational Image. (HT file)
Representational Image. (HT file)

Vaccine Maitri: India dispatches Covishield to Bhutan, Maldives

By Shalaka Shinde
PUBLISHED ON JAN 20, 2021 03:49 PM IST
Further shipments by India will be made for Bangladesh, Nepal, Myanmar and Seychelles, according to a statement by MEA
Close
Kamala Harris particularly struck a chord with Tamil people and her heritage when she called out to her ‘chithis’ (referring to a parent’s younger sister in Tamil) during her speech in August at the Democratic National Convention.(M Roopesh/HT Photo )
Kamala Harris particularly struck a chord with Tamil people and her heritage when she called out to her ‘chithis’ (referring to a parent’s younger sister in Tamil) during her speech in August at the Democratic National Convention.(M Roopesh/HT Photo )

‘Like winning Olympic gold’: Kamala Harris' village gears up for her oath taking

By Divya Chandrababu
UPDATED ON JAN 20, 2021 03:59 PM IST
Joe Biden will take oath as the 46th President of the United State on January 20 and Harris will be vice-president.
Close
Farmers have rejected the committee formed by SC on the grounds that it is pro-government. (REUTERS)
Farmers have rejected the committee formed by SC on the grounds that it is pro-government. (REUTERS)

Farm laws: SC irked over criticism of court-appointed committee members

UPDATED ON JAN 20, 2021 04:20 PM IST
The Supreme Court on Wednesday said there was no question of bias as the committee has not been given any adjudicatory powers
Close
Prime Minister Narendra Modi. (File photo)
Prime Minister Narendra Modi. (File photo)

TMC MP asks PM Modi to publish controversial book on Netaji, IMA

By HT Correspondent | Edited by Sameer
UPDATED ON JAN 20, 2021 03:26 PM IST
Sukhendu Sekhar Roy said that as per an official note exchanged between the MoD and the ministry of external affairs, pages 186 -191 of the unpublished book could add to the view that Netaji may not have died but survived the plane crash in August 1945
Close
BMC workers sanitise the area in front of bird enclosure at Lokmanya Tilak BMC Market , in Mumbai on January 14. (Anshuman Poyrekar/HT file)
BMC workers sanitise the area in front of bird enclosure at Lokmanya Tilak BMC Market , in Mumbai on January 14. (Anshuman Poyrekar/HT file)

Avian flu: 1,795 complaints of bird deaths in Mumbai, says BMC

By Mehul R Thakkar
PUBLISHED ON JAN 20, 2021 02:51 PM IST
Complaints include deaths of crows, pigeons and other birds, but not chicken, said BMC, even as it added that in many cases, there are multiple calls for a single death, raising the number of complaints higher than that of actual deaths
Close
An encounter is underway in Jammu and Kashmir’s Jammu district.(Reuters File Photo)
An encounter is underway in Jammu and Kashmir’s Jammu district.(Reuters File Photo)

4 soldiers injured in Pakistani firing along LoC in J-K's Akhnoor sector

Written by Prashasti Singh, New Delhi
UPDATED ON JAN 20, 2021 03:53 PM IST
The ceasefire violation from across the LoC took place in Jammu and Kashmir's Akhnoor sector.
Close
The victims—all residents of Chainpura village—were travelling in the ambulance that was on its way to Patna from Nalanda, police said.(HT Photo)
The victims—all residents of Chainpura village—were travelling in the ambulance that was on its way to Patna from Nalanda, police said.(HT Photo)

Speeding BMW kills 2 cops in Chennai, driver held

By Divya Chandrababu | Edited by Abhinav Sahay, Chennai
PUBLISHED ON JAN 20, 2021 02:22 PM IST
  • Raveendran, who was riding the bike, died on the spot while Karthik, the pillion rider, succumbed to his injuries at a government hospital around 11am, police said.
Close
SHARE
Story Saved
OPEN APP