Onion Prices Set To Stay High, Relief Unlikely Soon: ICICI Report – News18
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On November 6, the average wholesale onion price at Lasalgaon APMC hit Rs 5,656 per quintal, marking a five-year high last seen in December 2019
On Wednesday, the minimum and maximum wholesale prices of onion at Lasalgaon APMC were recorded at Rs 3,951 and Rs 5,656 per quintal, respectively. (PTI File)
Vegetable prices in India have been on the rise for the last few months. Although November saw the prices of many vegetables, including cabbage, tomato, and ridge gourd, fall by more than four per cent on a monthly basis, the price of onions is still leaving people teary-eyed.
On November 6, the wholesale price of onion in Lasalgaon onion market reached a five-year high. According to a report by ICICI Bank, there is no hope of relief from onion prices soon.
“Although vegetable prices have come down somewhat in November, onion prices still remain high,” the report states.
Heavy rains in August and September caused supply disruptions, leading to a 28% decrease in the supply of vegetables in markets. This price rise significantly impacted tomato prices, which soared by 49% in October compared to the previous month.
In October, vegetable prices experienced a significant surge, increasing by 42% year-on-year, representing the highest increase in 57 months. This substantial rise is primarily attributed to the considerable escalation in prices of essential commodities such as tomatoes, potatoes, and onions.
Tomato prices have witnessed a dramatic 161% year-on-year increase, while potato and onion prices have also climbed significantly, by 65% and 52% respectively.
On November 6, the average wholesale price of onion at the country’s largest onion market, Lasalgaon Agricultural Produce Market Committee (APMC), reached Rs 5,656 per quintal, the highest in the last five years. The last time onion prices were at this level was on December 10, 2019.
On Wednesday, the minimum and maximum wholesale prices of onion at Lasalgaon APMC were recorded at Rs 3,951 and Rs 5,656 per quintal, respectively. This occurred after the market had been closed on Monday.
The increase in vegetable prices has also affected retail inflation. India’s retail inflation rate stood at 6.21 per cent in October, the highest in the last 14 months. Core inflation, which is measured excluding food and energy, also increased. It rose from 3.5% in September to 3.7% in October.
According to the ICICI report, vegetable prices within the food sector increased by 8.2% in October, while this increase was 3.5% in September.
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