Onion prices soar due to crop damage

Nasik : Crop damage due to continuous rain in growing areas as well as low quality of fresh stocks have shot upwards price of onions, with the price of a kilo of onion inching towards Rs 40.

Registering a 57 per cent hike from last week, a kilo of onion now costs about Rs 35 against Rs 20 a week ago.

Traders in Lalsalgaon here, the biggest onion market in Asia, attribute continuous rain in growing areas to the shortage in supply.

Though new stocks have started arriving, there is a problem with quality and volume of arrivals is also low, a trader said.

As a result, demand for old stocks have risen and are ruling between Rs 3,000 to Rs 3,700 a quintal.

The new stocks are fetching Rs 1,000 to Rs 1,200 a quintal.

The situation is likely to improve by November end or December first week and the process will stabilize.

There is also export demand growing from West Asia and South-east Asia.