New Delhi June 11, 2024.
Onion prices have surged around 30-50% in the last two weeks due to a slowdown in arrivals and increasing demand ahead of Eid-al-Adha (Bakra Eid), reported The Economic Times.
Traders have begun holding stocks in anticipation that the central government might ease its interventions aimed at controlling prices.
Meanwhile, the price of top-quality onions, which constitute a small portion of the total traded volume, has exceeded Rs 30 per kg in many wholesale markets across Maharashtra.
The report noted that the primary driver behind the price hike is the current imbalance between supply and demand.
The onions arriving in markets from June onwards are sourced from stocks maintained by farmers and traders. Farmers are reluctant to sell from their stocks, expecting prices to rise due to a predicted decrease in the rabi crop for 2023-24.
Despite sluggish exports caused by a 40% export duty, domestic demand for onions remains strong, particularly with the approach of Eid-al-Adha on June 17.