After Tomato, Now Onions Will Make You Cry; Prices Set To Skyrocket For This Reason

New Delhi: According to research by Crisil, onion prices are now set to start skyrocketing in the retail market before the end of August, after tomatoes recently reached as high as Rs 250 per kg in various regions of the nation. It stated that due to limited availability, onion prices may increase to about Rs 60–70 per kg the following month.

However, it stated that prices will stay below 2020 highs. (Also Read: Turning Rs 5 Lakh Into Rs 1.5 Lakh Monthly: Simple Business Masterstroke That Turns Your Investment Into High Profits)

"Towards the end of August, onion prices are anticipated to reflect the supply-demand imbalance. In the retail sector, prices are predicted to significantly rise beginning in early September, reaching up to Rs 60–70 per kilogramme during the lean patch, based on our ground interactions. The analysis from Crisil Market Intelligence and Analytics predicts that prices "will remain below the highs of 2020. (Also Read: This Startup Fired 18 Employees But Extended Support in Finding New Jobs - Twitterati Reacts)

According to the report, rabi stocks in the open market are predicted to significantly decline by the end of August instead of September, extending the lean season by 15-20 days and potentially exposing the market to tight supplies and high prices.

This is because the shelf life of rabi onions was reduced by 1-2 months and panic selling occurred in February and March of this year.

According to the research, onion supply will decrease after kharif arrivals begin in October, which will cause prices to decrease. According to the survey, pricing fluctuations throughout the holiday season (October to December) are anticipated to stabilise.

This year, from January and May, consumers had to deal with noticeably more expensive cereals, pulses, and other vegetables. A decline in onion prices had provided some solace in this regard.

Onion producers, however, developed a bad attitude towards seeding during the kharif season as a result of this.

"As a result, we anticipate an 8 percent decrease in acreage this year and a 5 percent decrease in onion yield from the previous year's kharif. According to the report, annual production is projected to be 29 million tonnes (MMT), which is 7 percent more than the average of the previous five years (2018-2022).

Therefore, despite lower kharif and rabi output, a significant supply shortage is unlikely this year. Onion crop plantation and bulb growth, however, will depend on the amount of rainfall in August and September, it was said.