Skyrocketing onion price may not come down soon

Retail onion prices have surged as supply disruption due to rains in producing areas have flared up bulb rates across the country. In Indore, onion costs nearly Rs 100 per kg, which is 30 per cent above of prices in September.

Indore: Though India's Consumer Price Index-based retail inflation moderated slightly in September, there seems to be no respite from the spiralling prices of onion in the country, and there is very little hope of a quick relief.

In Indore, onion costs nearly Rs 100 per kg, which is 30 per cent above of prices in September.

According to the Union Consumer Affairs Ministry, retail onion prices have surged as supply disruption due to rains in producing areas have flared up bulb rates across the country.

Traders said that it will take at least 2-3 months for the new crop of onion to start arriving in the markets and the prices of the onion will come down only after the arrival of new crop.

Earlier, the government had taken a pre-emptive measure on September 14 by announcing a ban on onion export to ensure availability to domestic consumers at reasonable rates during the lean season before the Kharif onion arrival.

However, the Centre on Wednesday relaxed the norms for import of onions while deciding to release the crop from the buffer stock in a calibrated manner.