Government Says Onion Prices Moderating As Good Rains Boost Kharif Crops
The onion currently available in the market is Rabi harvested during March-May this year, which saw a production of 191 lakh tonne.
Onion prices are moderating as the quantity of Rabi produce released in the market is increasing, even as good and timely monsoon rains this year provide a big boost for Kharif crops, including onion, the government said on Friday.
The area targeted for Kharif sowing of major vegetables like onion, tomato and potato have seen significant increase over last year, as per the assessment of the Ministry of Agriculture with the state governments.
In May, inflation in onion prices stood at 38.1% on a yearly basis and 0.5% month-on-month.
Onion is harvested in three seasons: Rabi from March to May, Kharif from September to November, and late Kharif from January to February. The Rabi crop contributes approximately 70% of the total production, while Kharif and late Kharif together make up the remaining 30%. Kharif onions are crucial for stabilising prices during the gap between Rabi and peak Kharif arrivals.
The onion currently available in the market is Rabi harvested during March-May this year, which saw a production of 191 lakh tonne which is sufficient to meet the domestic consumption of about 17 lakh tonne per month, the government said.
Additionally, the dry weather conditions during and after the Rabi harvest this year have been noted to reduce storage losses for onions. India witnessed record high temperatures in this period when much of the country was under a sweltering heatwave.
As farmers release more Rabi onions into the market due to higher mandi prices and the onset of monsoon rains, which can increase atmospheric moisture and consequently storage losses, onion prices are stabilising, the government said.
The cost of the vegetarian "thali" or platter rose on-month in June mainly due to a rise in vegetable prices, with prices of potato, onion and tomato rising 9%, 15% and 29%, respectively, due to lower arrivals, Crisil Ratings said in a note on Friday.
Last month, the government said it bought nearly 71,000 tonne of onion so far this year for buffer stock, out of the total target of procuring 5 lakh tonne for price stabilisation, and it expects retail prices to ease with the progress of monsoon over most parts of the country.
