Onion prices may rise next month

PUNE: The new central government may have managed to keep onion prices in check during its first 100 days in office, but it may have to brace for a spike in prices of the politically-sensitive commodity ahead of the series of upcoming assembly elections and pray that it does not rain at the time of harvesting the new crop.

Although supply of the new crop has already started in Karnataka, the new kharif crop from Maharashtra is expected only by October-end or the beginning of November.

“If it rains at the time of harvesting of the new crop, then the supply situation can turn critical,” said a Nashik-based onion exporter, who did not wish to be identified. Traders and experts say onion stocks will start running out from the end of this month, leading to an increase in prices of the commodity from next month.

“Prices can increase after October 15,” said Changdev Holkar, director of National Agricultural Co-operative Marketing Federation or Nafed.

However, he added: “There is ample onion in other countries like Pakistan that can be imported to meet the shortage in domestic market.”

Stocks in Rajasthan, which has been feeding onions to Delhi, are likely to last for just 15 to 20 days.