Onion Prices Stay High in Delhi Compared to Other States Despite Export Curbs

The soaring prices of onions in the national capital continue to concern consumers as the average retail price remains stubbornly high at Rs 78 per kilogram. Even as the wholesale prices in Maharashtra, a key onion supplier, have started to cool down following the imposition of export restrictions, Delhi's onion market shows no signs of relief.

The latest official data reveals that the all-India average retail price for onions increased by Rs 3.40 per kilogram, reaching Rs 53.75 per kilogram on Tuesday. The surge in prices in Delhi began on October 25 when onions were priced at Rs 40 per kilogram. By October 29, these prices had doubled to Rs 80 per kilogram. Although prices fell marginally to Rs 78 per kilogram on October 30, they remained at the same level on Tuesday, according to data from the Ministry of Consumer Affairs.

Delhi currently faces the highest average retail onion prices compared to other states and union territories, with Goa and Puducherry coming in second at an average of Rs 72 per kilogram. In other states, retail prices range from Rs 41 to Rs 69 per kilogram.

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Official sources have pointed out that the surge in both wholesale and retail onion prices is largely driven by speculation, despite the availability of 15-20 lakh tonnes of rabi crop stock in Maharashtra, which should be sufficient to meet the demand for a month.

The sudden spike in onion prices cannot be solely attributed to a potential decrease in fresh kharif output and a two-week delay in arrivals. There is enough old crop stock to meet domestic demand, and the government has maintained a buffer stock of 5 lakh tonnes.

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The imposition of a minimum export price on onions at USD 800 per tonne until December-end, enacted on October 29, has been effective in cooling down prices, particularly in Maharashtra, where prices fell by 4-10 percent on October 30.

The new kharif crop has begun to arrive in small quantities in the market, with larger quantities expected from the second week of November from key growing states such as Karnataka, Maharashtra, and Andhra Pradesh. Until the new crop becomes available, the government plans to release buffer stock to increase onion availability and control price inflation. So far, 1.8 lakh tonnes of onion have been released into the market.

As per official data, the country had exported about 15 lakh tonnes of onions by October 20 of this fiscal year. In the 2022-23 fiscal year, total onion exports reached 25 lakh tonnes.

Onions are grown in three seasons—kharif, late kharif, and rabi. It is the rabi onions that are stored, as they have a longer shelf life. While government measures are being taken to stabilize the onion market, consumers in Delhi and other parts of the country remain watchful, hoping for a reduction in onion prices in the coming weeks as fresh crops enter the market.

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