Onion prices surge by 30-50% due to high demand ahead of Bakra Eid

Onion prices have surged by 30-50% over the past fortnight due to reduced arrivals and increased demand ahead of Bakra Eid, according to a report in the Economic Times.

The report indicates that traders are hoarding stocks in anticipation of potential government measures to control prices. The average wholesale price of onions at the Lasalgaon mandi in Nashik was 26 rupees per kg on Monday, up from 17 rupees on May 25.

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Top-quality onions, which constitute a small portion of the total traded volume, have exceeded 30 rupees per kg in many wholesale markets across the state. The recent price hike is primarily due to the imbalance between demand and supply.

Onions arriving in markets from June onwards come from stocks held by farmers and traders. Farmers are reluctant to sell their stock, expecting prices to rise with a potential decline in the rabi crop of 2023-24.

Apart from this, prices of tomato, onion, and potato have surged in Mumbai due to extreme heat, and unseasonal rain showers affecting supply, and spoilage in the last one week.