Onion prices expected to surge due to decreased supplies and scanty rainfall

Bengaluru, NT Bureau: Reports suggest that onion prices are set to rise in the near future due to limited rainfall and reduced supplies.

The cost of one kilogram of onions has surged from Rs 15-20 to Rs 40-45 in recent days. Regions like Chitradurga, Chikkaballapura, Gadag, Vijayapura, and others, known for onion cultivation, have experienced poor yields due to insufficient rain.

Karnataka relied on Pune and Nasik for a significant portion of its onion supply, but the drought-induced inadequate rainfall has halted these imports.

As a result, the state is currently producing only 40% of its total onion capacity. Reports indicate that onion prices are anticipated to climb during the Dasara and Deepavali seasons.

In August, the central government imposed a 40% duty on onion exports to enhance domestic supplies and manage inflation. This export duty will remain in effect until December.

The National Cooperative Consumer's Federation of India (NCCF) procured 2,826 tonnes of onions in August and has stored them.