After skyrocketing tomato prices, the price of onions could also see a spike.
According to a Mint article, vendors say that the monsoon's delayed arrival has already had a negative impact on supply, and by December this year, the shortage may get much worse.
The article quotes data from the Department of Consumer Affairs, which shows that onion retail prices have significantly increased in five regions of Maharashtra over the past month. However, compared to last year, the prices are still lower.
According to official statistics, the average retail price of onion in India in 2020, 2021, and 2022 were ₹35, ₹32, and ₹28 per kilogram.
Approximately two months ago, the government bought 0.14 million tonnes (MT) of onion stock from the farmers.
The Indian government announced that it expects onion production to decline to 31.01 million tonnes this year from 31.69 million tonnes in 2021–2022.
However, Piyush Goyal, the Union's food minister, stated in April that the central government would keep a buffer supply of 3 lakh tonnes of onions for the 2023–2024 growing season. The government had a buffer reserve of 2.51 lakh tonnes of onions in 2022–2023.
The buffer stock is kept on hand in case of emergencies and to stabilise prices if rates rise noticeably during a period of low supply.
65% of India's onion production that is harvested during the Rabi season, which runs from April to June, satisfies consumer demand until the Kharif crop is harvested in October or November.
This came after persistent rains across the nation had a negative impact on tomato prices. Due to the limited supply brought on by crop damage from heavy rain and intense heat, tomato prices have increased from ₹10-₹20 per kilogram to ₹80-₹100 per kilogram.