57 per cent hike in onion prices since last week

Nashik: After unseasonal rainfall destroyed the onion crop this past fortnight, there has been a sharp increase in prices with a kilo costing about Rs. 35. This is a 57 per cent hike from last week, when it was available for Rs. 20 a kilo.

At Nashik's Lalsalgaon, the biggest onion market in Asia, traders blame the shortage on unseasonal rains that has destroyed some of the crop.

"There is a shortage of supply in the market," said Umalay Sonkar, a trader.

"This situation is due to the climate. I think by November end or December first week the situation will improve and prices will stabilize," said another trader.

Also, the Centre has slashed the minimum export price by $ 50 dollars to $ 375 per tonne for November against $425 per tonne to boost exports, anticipating a fresh crop by mid-November.

This has pushed up export demand, at a time, when supply in the domestic market is already low. Traders however assure once the weather stabilises, the price will also stabilise.


Source: http://www.ndtv.com/article/india/57-per-cent-hike-in-onion-prices-since-last-week-66085?cp