Onion prices in India are climbing steeply before the festive season begins, Indian Express Bangla reports. Government data show the average retail price rose about 82 per cent in three months, from Rs 29.50 a kg on 1 June to Rs 53.78 on 17 September, while the wholesale price roughly doubled from Rs 22.60 a kg on 1 June to Rs 46.20 on 10 September and Rs 45.68 on 17 September.

Reduced arrivals from Maharashtra and Karnataka are blamed: Maharashtra, the leading producer, has a shortfall in its summer onion crop, Karnataka is sending less than before, and the new season's onions are late to market. With old-crop stocks running down and the new crop not yet arriving in volume, a temporary supply gap has opened that is felt in both wholesale and retail markets.

August and September usually bring pressure on onion prices as old stocks dwindle and festival demand rises; demand climbed around Raksha Bandhan and Ganesh Chaturthi and more festivals lie ahead, so the pressure may persist. Rain could also disrupt transport and supply and feed through to prices, the report says.

Prices are expected to ease once the new kharif crop arrives in sufficient quantity. To hold prices down the government can release onions bought cheaply for its buffer stock, selling them at about Rs 35 a kg in selected places, and if domestic supply tightens it can restrict exports through duties or other measures.

Experts warn that the price rise and any policy change could affect ordinary households' monthly food bills. Indian export curbs on onions have in the past quickly reached Bangladesh's import-dependent onion market.

Source: Indian Express Bangla