Jaw-Dropping Increase in the Price of Onions in Ten Days

In the heart of India’s capital, the cost of onion has surged by a jaw-dropping 50% within ten days, creating waves of concern among consumers. Even the colossal entity known as Mother Dairy, a subsidiary of the illustrious National Dairy Development Board (NDDB), has succumbed to the inexorable forces of economics and has been compelled to adjust its prices at retail outposts.This thrilling onion price crescendo coincides with the culmination of the 10-day Navratri festival, culminating in the joyous celebration of Dussehra. The onion market was a tranquil sea of $0,48 per kilogram until three days ago. It has now metamorphosed into a realm where the price is $0,60 per kilogram.

In the vibrant retail markets of Noida, the onion hierarchy prevails – inferior quality onions fetching $0.60 per kilogram, medium-grade specimens commanding $0.72 per kilogram, and the superior varieties reigning supreme at a princely $0.84 per kilogram.

Yet, in the heart of this price labyrinth, Mother Dairy, the dairy juggernaut, adjusts its rates in harmony with market dynamics. From a price point of $0,59 per kilogram on Tuesday, the onion’s journey unfolds as it scales to $0.67 per kilogram in Noida. It began at an even more humble $0,51 per kilogram just before the grand festivities of Navratri. Crossing state lines into Delhi, Mother Dairy presents onions to discerning customers at $0,72 per kilogram.

In an intriguing twist, subdued demand during the Navratri festivities prevented an abrupt price escalation. This transpired even though prices had been steadily ascending in Maharashtra, a prominent onion-producing region, over two months prior, compelling the government to impose export duties to bolster domestic supplies. The tale unfolds further with the arrival of Kharif-grown onions, typically harvested during October and November.This year, they debuted in mid-September, infusing the market with fresh produce. However, a significant drop of 36% in the sowing area, encompassing approximately 58,000 hectares in Maharashtra, fueled the rapid ascent of prices. The beacon of hope lies in the late-Kharif crop, expected to grace the market by the final week of November, offering the potential to alleviate the prevailing onion scarcity.

The post-Navratri onion resurgence, the onion scape is rife with fluctuating supply dynamics. As demand surges, particularly after the Navratri festivities, the onion landscape in Delhi faces a dwindling supply. The fresh Kharif crop is experiencing a delay, and the inflow of stored onions has significantly declined over the past fortnight. These factors have widened the demand-supply gap and catapulted consumer prices to their current zenith.