New Delhi: In trying times for household budgets, onion prices have skyrocketed sending budgets out of control. The average wholesale price of onion has more than doubled since the beginning of this month. It's selling between Rs 70 and Rs 80 rupees per kg.
Hoarding has led to a 25 per cent hike in India's biggest wholesale market in Lasalgaon, Nashik, where it is Rs 4,500 a quintal. Drought has led to a 40 per cent fall in supply in both Rajasthan and Madhya Pradesh, squeezing supplies further.
Prices are not likely to come down before September when the new crop comes into the market. Looking at the market trend, traders pointed that in the coming days retail onion prices can soar up to Rs 80 per kg.
"If this trend of of increase in onion prices continues, the retail price could touch Rs 80 in next week or so," Azadpur Mandi's Onion Merchant Traders Association President Surendra Budhiraj said. He added wholesale onion prices soar to Rs 50 to 55 per kg on back of higher prices in Pune and Nashik mandis.
Traders at Nashik and Delhi mandi also noted that prices would cool down once the supplies of the new crop from Andhra Pradesh and Karnataka increase.
(With additional information from PTI)