Excessive rain in parts of the State in August and September led to large-scale crop damage that has now caused a severe shortage of onions, driving its price northwards.
“The supply of onions has dropped to unprecedented levels. Crop loss was reported from almost all onion growing regions of the State starting from Sira, Molakalmur and Hubballi to Belagavi. What has worsened the situation is a similar crop loss in Maharashtra and Telangana as well,” said Ravi Kumar of Bangalore Onion and Potato Traders’ Association.
Onions are currently being traded at ₹40 a kg in the wholesale market, which has already pushed the retail price to above ₹50, sometimes even being sold at ₹60 a kg. However, despite paying a steep price, the quality of onions is poor.
“Waterlogging and increased soil moisture have damaged the crop hugely,” Mr. Ravi Kumar said.
All hopes are pinned on the next harvest from Rajasthan, which is expected to reach the market in November–December. If that fails, it will create a long period of acute shortage till the next harvest in February, warn traders.
“If the Rajasthan crop is not adequate, we may see onion prices cross the ₹120 level, but then too, the quality may be very bad,” Mr. Kumar said.
