Torrents of rain during the current monsoon season is the reason behind recent onion price hike in the country. The prices of the kitchen staple have reached Rs 70 per kg level in some cities of the nation. In the last one week, prices have almost doubled from Rs 35 per kg. Not only onion, prices of other food items like garlic, capsicum,  bottle gourd and spinach have also reported to have surged recently.

Onion Prices Up 60% In Last One Year

Department of Consumer Affairs showed, average price of the bulb vegetable have increased 60% in last one year from Rs 33 per kg to Rs 53 per 1,000 gm.

In New Delhi and Mumbai, online food delivery apps showed onion prices at around Rs 71-72 per kg. In the national capital, garlic prices were at Rs 560 per kg. Spinach was available at more than Rs 200 per kg. While, capsicum was available above Rs 250 per 1000 gm.

According to India Meteorological Department (IMD), India has received six per cent above normal rainfall during the priod from June 1 to September 26. The largest wholesale onion market in India is Lasalgaon in  Nashik, Maharashtra. In Mumbai, IMD reported 26% above normal rainfall during the current monsoon season.

Mumbai Received 26% More Rainfall

Torrents of rain have resulted in supply disruptions of onion and other veggies. Due to heavy downpour in Maharashtra (biggest onion producer in India) IMD has issued  red alert in the state. Supply of onion from Maharashtra to other parts of the country has been disrupted. Transportation has been impacted.  This has led to supply crunch in the markets leading to price surge.

GoI Lifted MEP, Slashed Export Duty

Earlier, the Government of India (GoI) had lifted Minimum Export Price (MEP) on onion in the country. The government also slashed export duty to 20%. This created clear passage for exporters to sell onion produce in other countries.