Onion prices have skyrocketed in India due to excessive rains in Karnataka and Andhra Pradesh, where the summer crop is grown. In particular, India’s major onion-producing states have witnessed around 41% more rain than normal since the monsoon season began on June 1, causing damage to crops. However, despite periodic fluctuations in price, onion consumption, per person per year, has steadily increased from 2.25 kg in 1961 to 14.7 kg in 2017.
India is the world’s largest exporter of onions, a staple of South Asian cuisine. Countries like Bangladesh, Nepal, Malaysia, and Sri Lanka rely heavily on Indian shipments. On Wednesday, the Center relaxed import rules until December 15 to allow early shipment of onions to renew the domestic supply and check retail prices for the kitchen staple. The Union Ministry of Consumer Affairs, in a statement, said that it will also unload more onions from its reserve stock on the open market to limit price increases. A Kharif crop estimated at 37 lakh ton is likely to start reaching the mandi, which will alleviate price increases to some extent, he added.
In states such as Madhya Pradesh, along with Maharashtra and Karnataka, which are major onion producers, the blockade halted purchasing power and hampered the transport of the product to distant places, leaving farmers in a state of despair. This year, despite a bumper harvest, onion growers are hurt as prices have fallen below the cost of inputs. Notably, until a few days before the national shutdown was imposed, onions were being sold at 11-12 rupees per kg wholesale, but when the restrictions came into effect, prices were cut in half in no time, Dilip Patidar, a farmer from Mandsaur, had told News18.
“The supplies of the new crop have been delayed for almost a month. Prices could remain firm in the short term, “Ajit Shah, president of the Mumbai-based Onion Exporters Association, told the news agency. Reuters last month. The issue also emerged as a point of tension between New Delhi and Dhaka after Bangladesh conveyed its “deep concern” over India’s decision to ban the export of onions. However, the Indian government later granted a special permit to export 25,000 tonnes of onion to Bangladesh.
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