Consumers are left teary eyed as price of onions have skyrocketed in recent days. The price of the staple commodity has surged to Rs 70-80 per kilogram in wholesale markets from Rs 40-60 per kilogram with some regions reporting prices as high as Rs 80 per kilogram as of November 8.
The latest hike has left consumers in distress and struggling to adjust to the rising costs of this essential kitchen staple.
“The price of onions has risen from Rs 60 to Rs 70 per kilo. We source them from the mandi, so the prices we receive there directly affect what we sell it for. Sales have dropped due to the price hike, but people are still buying onions because it's a crucial part of daily meals,” a seller in a Delhi market told ANI.
Business Today was unable to verify the development on its own.
Heavy rainfall in the month of October in Maharashtra, the country’s top onion grower, has delayed the new crop of red onions, creating a shortage of supply in the entire country, especially in north Indian states like Punjab, Haryana and Chandigarh, according to media reports.
Consumers are feeling the burnt due to the price hike. “The price of onions has shot up, even though it should have decreased according to the season. I just bought onions at Rs 70 per kilo, which has impacted our food habits. I urge the government to reduce the prices of vegetables, especially those we use daily,” a buyer in Delhi told ANI.
However, the price surge is not limited to Delhi, buyers are also feeling the pinch in Mumbai and other cities.
“The price of onions and garlic has doubled. This price surge is affecting household budgets. I purchased 5 kilograms of onions for Rs 360,” a consumer in Mumbai, told ANI.
A seller explained, “The increase in onion prices is due to inflation. The price has risen from Rs 60 to Rs 70-75 per kilo, but since onions are a staple, people are still buying them despite the higher cost.”
According to the latest Crisil report, the cost of a home-cooked vegetable thali soared by 20 percent in October 2024 compared to the previous year, while a non-vegetarian thali, after a steady year-long price decline, saw a 5 percent increase. This spike was largely driven by higher costs for vegetables and cooking oils during the festival season.
The surge in prices for key vegetables, including tomatoes, onions and potatoes, was significant. The Crisil Market Intelligence & Analytics’ latest Roti Rice Rate (RRR) report explained that adverse weather events delayed harvests in major producing regions with incessant September rainfall affecting kharif onions, damaging tomato crops, and reducing cold storage stocks of potatoes.
Consequently, tomato prices more than doubled year-on-year, rising from Rs 29/kg to Rs 64/kg. Onion prices climbed by 46 percent and potato prices jumped 51 percent compared to October 2023, asper the report.
The ongoing price hikes stem from several factors, including adverse weather. Heavy September rains delayed the arrival of the kharif harvest, leading to a shortage of new onion stock in major markets like Lasalgaon. As a result, onion prices increased sharply from Rs 47.70 per kg to Rs 57.70 per kg in early November. Tomatoes followed suit, with prices rising by around 25 percent within a week at Nashik’s Pimpalgaon APMC.