With no policy in place for maintaining stability in the price of the staple vegetable onion, we may see again prices jump as we are close to October-November, the time when the vegetable over the years has been seeing high prices.
Already the wholesale price of onion at Lasalgaon, the country's largest wholesale market has seen doubling in price in just 10 days., with prices in the national capital quoting at Rs. 70 per kg and in Pune and Mumbai at Rs. 50 per kg. And despite the hike, farmers are complaining of a large scale damage to their crop which has impacted their profits.
At present high prices are owing to decline in supply as well as huge damage due to rain of onion crop in the country's leading producestates Maharashtra, Karnataka and Andhra Pradesh, three major producer states.
Now that the Essential Commodities Act is in place no stocking limit as last year's can be put to curb the price rise. So, as supply is said to take a hit and is expected no early than Mid-October households will have to brace for higher onion prices.
And as most of the supply in the market is currently those harvested in March-April period, state government and centre is demanding for compensation for onion famers for the produce sold during the lockdown period.