The price of onions has crossed over 100 rupees, still the government has not taken any action yet.
In the past few days, the price of onion has skyrocketed to Rs 100 per kilogram in several Indian states. Additionally, on Friday, the average wholesale price of onion in Lasalgaon, which is India's largest wholesale onion market, plummeted by 24% in just five days, to Rs 3,650 per quintal. It's worth noting that the recent surge in onion prices before the Diwali festival has raised concerns among consumers. As a result, the Central Government has taken several measures to curb the rise in prices. Furthermore, the Department of Consumer Affairs is considering setting a minimum export price (MEP) of $800 per tonne of onion from October 29, 2023, to December 31, 2023, to address the decline in exports and increase supplies in the domestic market.
Onion prices fall by 24 percent in Lasalgaon
On Friday, it was reported by a media agency that the average wholesale prices of onions in Lasalgaon, India's largest wholesale onion market, had dropped by 24 percent in just five days to Rs 3,650 per quintal. Interestingly, the average wholesale price of onions in Lasalgaon had increased from Rs 2,050 per quintal on October 3 to Rs 4,800 per quintal on October 28. The recent surge in onion prices could be attributed to several factors, including a shortage of supply in both domestic and export markets. In light of this, it would be beneficial to discuss in detail the possible reasons behind the increase in onion prices.
Also read: The central government has completed its preparations to control inflation before the festival. As a part of this effort, the government has imposed a 40 percent tax on the export of onions to limit their sale in the international market. Previously, there was no export tax on onions. Additionally, the Center has set the Minimum Export Price (MEP) for onion exports at Rs 66,730 per tonne, which means that until December 31, 2023, no onion trader can export onions at a price lower than this.
