Onion costs more than ₹ 50 a kilogram in most metro cities including Delhi, up by 25% over July, as the month of Shravan when many Hindus do not eat onions and follow other dietary restrictions is over in North India, increasing consumption of the bulb vegetable.
Meanwhile, the price of chicken has declined by about 10% to ₹84 a kg ex-farm in the past one month. Compared with two months ago, it is down 25%.
At the Lasalgaon wholesale market in Maharashtra, the average price of onion has increased by about 30% in the last one month to ₹35 a kg as on Wednesday.
Onion traders said many trade participants were holding the stock expecting further appreciation in prices. “Many farmers and traders are holding the crop thinking that there would be heavy rainfall in October and November, which may lead to an increase in the prices,” said Vikas Singh, an onion exporter from Maharashtra.
The Lasalgaon wholesale market, India’s largest for onions, has seen arrivals of 370,000 quintals of the vegetable this month till Wednesday, as against 700,000 quintals in the entire August last year.Demand for onions in North India has gone up as the month of Shravan ended, said Singh. The central government has made a buffer stock of onions to control its price, but supplies of that has not yet started.While tomato prices have softened in the South, falling to ₹15-25 a kg in wholesale, in some of the northern states, it continues to be expensive at as much as ₹40 a kg in certain markets.
Wheat prices, which have gradually increased to ₹27-28/kg during the last 3-4 months from ₹23-24/kg in the open market, are expected to remain firm as festival demand has kicked in.
Although consumers have got some respite due to a fall in the prices of pulses like masoor, tur and moong, chana, the most consumed dal that sees a spike in demand during the festive season, has become costlier by 10% in the past one month.