Onion prices may ease in coming weeks as fresh arrivals rise and buffer stock sales expand

Customers troubled by rising onion prices may get relief in the next few weeks. Arrivals of kharif-season onions from Maharashtra, Karnataka and other producing states have increased. The Centre has also stepped up sales of onions from its buffer stock to keep prices in check. As a result, onion prices are expected to come down around the festival season.

The average retail price of onions is currently Rs 52.99 a kg, nearly double the level a year ago. According to Consumer Affairs Ministry data, the average retail price was Rs 53.10 a kg around September 10. On October 10 it dipped slightly to Rs 52.99 a kg. There are signs of supply improving in the wholesale market, but retail customers have benefited only marginally. The average wholesale price was 4,591 a quintal, which is 2.4 per cent higher than a month ago and 123.3 per cent higher than a year ago.

The biggest reason for the hope of relief is the increased arrival of the new crop from Maharashtra and other producing states. Traders expect onion availability in the market to improve by November. Supplies from Karnataka, Telangana and Andhra Pradesh are likely to continue until the end of November.

The government has strengthened the distribution system. The aim is to prevent a sharp spike in prices during the festivals and to keep supply in the market adequate. Despite onions being available from government stock, retail prices have not yet fallen significantly.

Maharashtra and Madhya Pradesh also hold adequate stocks of old onions, which could help meet demand until the third week of November. Meanwhile, increased supply from the Alwar area of Rajasthan could reduce north India's dependence on Maharashtra. To curb the rising prices, the Centre has expanded the sale of onions from the buffer stock to 123 cities.