Onion prices have been skyrocketing across the country.Price of the kitchen staple in every household has hovered over Rs 120 per kg in the retail markets in different cities.Here are 4 reason why experts feel the onions are going beyond the reach of the common man
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REASON 1: PRICE VOLATILITYPrice volatility refers to regular swing patterns in rates of commodities. This is caused mainly because of disrupting factors like extreme weather, high losses from inadequate or improper storage or frequently shifting production levels. These factors impact the supply chain within a matter of weeks
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REASON 2: SHORTAGE OF ONION SEEDSMaharashtra onion farmers are complaining of a severe shortage of onion seeds as they prepare for rabi sowing. Accordingt to media reports, Nurseries in the northern belt of Maharashtra, which includes Kalwan, Satana, Malegaon and Deola, have been destroyed because of rains for the third time.
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REASON 3: DISRUPTIVE WEATHERRains over the past week in parts of Maharashtra like Nashik and Malegaon and parts of Telangana and Andhra Pradesh have either damaged crops or delayed harvests.
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REASON 4: FESTIVE SEASONOnion prices are likely to remain elevated during the festive season. With year's onion output likely to drop by at least 10-15% and the demand peaking during the festive season, the prices are expected to go up further.
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