The government has taken several measures to control the inflation of onions. This also includes a buffer stock of 2 lakh tonnes earmarked for onions for the fiscal year 2022.
- Devesh Tiwari
- Onion prices:
In the festive season this year, the price of onions may bother you. Onion prices are expected to remain high during October-November. This is because the arrival of the new crop may be delayed due to an uncertain monsoon. This information has come to the fore in a report by Crisil Research. The report said that the delay in arrival of Kharif crop and shortened shelf life of buffer stock due to Cyclone Tauktae is likely to increase prices.
Onion inflation will increase due to lack of rain?
According to the report, “Onion prices are expected to increase by more than 100 percent this year as compared to 2018. The prices for Kharif 2021 are expected to cross Rs 30 per kg due to difficulties in transplanting the crop in Maharashtra. However, it will be slightly lower (1-5 per cent) on an annualized basis due to the high base of Kharif 2020.
Onion prices are likely to remain higher during October-November following delay in crop arrivals due to deficient rains, as there is no improvement in monsoon conditions in August, the most important month for transplanting, the report said. Happened.
CRISIL Research expects Kharif 2021 production to grow by 3 per cent year-on-year. Even though the onion harvest from Maharashtra is expected to be delayed, prices are expected to come down marginally due to increase in acreage, better yield, buffer stock and restrictions on exports.
New crop arrival delayed by 2-3 weeks
The report said that in the same festive season last year, onion prices had doubled as compared to the normal year of 2018. At that time, due to heavy rains, there was heavy damage to the Kharif crop in Andhra Pradesh, Karnataka and Maharashtra. Uncertainty in monsoon is expected to delay the arrival of Kharif onions by 2-3 weeks in the market till late October or early November, so prices are likely to rise by then.
Government took these steps to check inflation
The government has taken several measures to check the rise in onion prices. This includes a buffer stock of two lakh tonnes earmarked for onions for the fiscal year 2022. About 90 per cent of the planned buffer stock for onions has been procured, with the highest contribution coming from Maharashtra (0.15 million tonnes).
Apart from this, the government has advised to increase the area under kharif onion from 41,081 hectares to 51,000 hectares in the traditionally non-onion growing states of Rajasthan, Haryana, Madhya Pradesh, Gujarat and Uttar Pradesh.