Onion prices at Rs 10/kg from Rs 100 in 2019 as demand falls

PUNE: Onion prices are rapidly coming down as lack of domestic as well as export demand and surplus production in India and the rest of the world puts pressure on prices. Onion prices have already decreased by 50% in past five weeks and are expected to crash by May if it does not receive government support.

Retail onion prices had crossed Rs 100 per kg in 2019 and at farm gate prices had crossed Rs 50/kg. Thanks to high returns, area under onion crop has increased in India as well as other onion producing countries, said trade sources.

“In India, the rabi crop is more by about 40%. However, there are many issues like lack of labour for grading and packing onions for storage and export. Lack of demand in India as well as for export due to prevailing lockdown conditions in most countries,” said Danish Shah, a veteran onion exporter.


The wholesale onion prices have declined to Rs 8-10/kg in most markets of the country, including consuming centres like Delhi, Mumbai as well as growing markets like Nashik and Indore. About five to six weeks ago, wholesale prices were ruling around Rs 16-18/kg.