Tomato prices are skyrocketing across the country. Somewhere tomato is being sold at Rs.120 per kg, and somewhere it has crossed Rs.200. Although there has been a relief in the prices of tomatoes in some places. At the same time, an increase in the onion price is also expected. A report has said there may be a record increase in the price of onions. Currently, the cost of onion ranges from Rs 28 to Rs 32.
How Expensive Can Onions Be?
At the end of August, there may be a record increase in the price of onion in the retail market. This increase will likely increase to around Rs 60-70 per kg in the next month due to a shortage in supply. According to Crisil Market Intelligence and Analytics report, even after such an increase in the price, these increased prices will remain below the highest level of 2020.
How Long Will The Prices Go Up
The report states that due to the reduced shelf life of rabi onions by 1-2 months and selling in February-March this year, the rabi stock in the open market is expected to decrease significantly by the end of August instead of September, thereby increasing the onion stock. The lean season is 15-20 days, so the market will likely face supply shortages and higher prices.
Onion Prices Were Low From January to May
The prices may decrease again in October when the new onion crop arrives. It has been said in the report that the fluctuations in prices are expected to stabilize in the festive month of October-December. Significantly, pulses, grains and other vegetables were expensive from January to May, during which onion prices relieved the people.
Decrease In Sowing
Due to the reduction in the price of onion, farmers have cultivated less onion this time, which is expected that the area will decrease by 8 per cent this year and the kharif production of onion will fall by 5 per cent year-on-year. The annual output is expected to be 29 million tonnes (MMT), 7% higher than last year. Therefore, despite lower kharif and rabi production, there is no possibility of a significant shortfall in supply this year.
