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Reasons why onion price surges in India after a short while

After a short while, the prices of onions and shallots witness a surge in India. In view of the spike, the Centre has announced a waiver on import restrictions till December 15. Also, attempts have been made to bring more onions to market from the stockpile. At the same time, the Indian High Commissioners in the concerned countries have been directed to import more onions to the country. Government has also taken measures to stop hoarding in the market.

As per the latest rate, onion price in Kerala and Chennai has gone up to Rs 100-120 per kg. Last week it was Rs 40-50. In Andhra Pradesh, it is sold at Rs 75-80 per kg.In Mumbai and Pune markets, the stock traded between Rs 80 and Rs 120. . Prices range from Rs 60 to Rs 70 in Guwahati and Patna. In the last 10 days, the price of onion has gone up to more than Rs 11 per kg.  In the pan-India level, the retail price rose to Rs 51.95 per kg. This is 12 per cent higher than last year’s price of Rs 46.33.

Heavy rains have contributed to the surge in onion prices since last October. The prolonged monsoon in Maharashtra, Karnataka and Madhya Pradesh has caused widespread damage to the Kharif crop of onions.  In Maharashtra alone, one million tonnes of onions were destroyed. rain damaged the onion stockpile stored in many places. The fact that the next harvest will reach the market only in mid-November has, in fact, worsened the situation. The government had imposed a ban on onion exports in September to ensure availability in the domestic market.

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