Onion Prices Drop in Maharashtra After Government Intervention, But Delhi Still Feels the Pinch

Onion Prices Surge in Delhi as Government Imposes MEP

The average Onion Prices in the retail market of Delhi has reached a staggering ₹78 per kilogram. It is causing concerns for consumers and traders. This surge in onion prices has also been witnessed in various other states across India, including Uttar Pradesh, Karnataka, and Maharashtra.

To combat the soaring onion prices, the Indian government has taken several measures. They have imposed a Minimum Export Price (MEP) of $800 per tonne on onion exports until December 31. This move aims to ensure a sufficient supply of onions in the domestic market. The MEP applies to all varieties of onions except Bangalore Rose and Krishnapuram onions, as well as cut, sliced, or broken onion forms.

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The Impact of Government Intervention

The imposition of the MEP has had a noticeable impact on onion prices in Maharashtra. Prices in Maharashtra markets have decreased by 5% to 9% compared to the previous week. The weighted average price of onions in Maharashtra’s markets has seen a 4.5% decline.

The surge in onion prices can be attributed to several factors. The exhaustion of stored Rabi onions, along with delays in the arrival of the Kharif onion crop, has created a tight supply situation. This situation has resulted in increased onion prices in both wholesale and retail markets.

#FPNews: #Onion prices remained at a very high level in the national capital on Monday and were being sold at an average price of Rs 78 per kilogram in the retail market, according to government data. https://t.co/Z2KeP3kzuz

— Firstpost (@firstpost) October 30, 2023

Delays in Kharif Onion Arrival

One of the primary reasons for soaring prices of onion is the delay in the sowing of Kharif onions due to adverse weather conditions. This delay has led to less coverage and a late arrival of the crop in the market.

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Consumers and traders are expressing concerns about the escalating onion prices, with fears that they might surpass ₹100 per kilogram in the coming days. The government has predicted that onion prices will remain high until December when the Kharif crop becomes available in the market.