Onion prices could go up to Rs 100/kg due to shortages and rising demand

NT Correspondent

Bengaluru: Rising demand and a supply shortage have caused onion prices to surge in both retail and wholesale markets.

The state's onion production has been hampered by a lack of rainfall, further straining the situation.

Reports indicate that onion supplies from other states have fallen due to a sudden spike in demand, leading to current prices in the city reaching Rs 70 per kg, with the potential to exceed Rs 100 per kg.

Officials from the Agricultural Produce Market Committee (AMPC) and local retailers have noted a sudden drop in onion supplies over the past ten days.

Yeshwanpur APMC market, which used to receive 70 to 75 sacks of onions daily, is now only getting 40 to 50 sacks. This shortage has driven up onion prices by 50% in recent days.

Reports also highlight the impact of inadequate rainfall on onion cultivation in areas like Kadur, Tarikere, and Dharwad District. With only a fraction of the planned cultivation area harvested, onion prices have substantially increased, affecting markets like Hubballi APMC and Belagavi AMPC.

It's anticipated that quintal onion prices may climb to Rs 8,000 to Rs 9,000 soon, potentially pushing retail prices to Rs 100 to Rs 120 per kg. Furthermore, the reliance on onion supplies from Maharashtra, specifically the Nasik and Solapur regions, has been disrupted due to heightened demand.

This year, many traditional onion g rowers have switched to cultivating other crops, as onion prices remained stagnant for the past two years.