The surge in onion prices to ₹70 per kg in Bengaluru is attributed to a confluence of climatic and supply factors. There's a reported drought, and the decline in the Rabi stock of onions along with the delay in the arrival of fresh Kharif stock has exacerbated the situation1.
Over a week, the wholesale prices jumped from ₹50 to ₹70 per kg, mirroring a broader national trend of escalating onion prices2. Moreover, adverse weather conditions like excess rainfall and a rain deficit in various parts of Karnataka have disrupted onion cultivation, leading to a supply shortage and subsequent price hikes.
Onion prices in Bengaluru have surged by 40-50% in a week, with some HOPCOMPS stores selling onions for ₹75 on Sunday, up from ₹40-45 last week. The drought in north Karnataka, a major onion-producing region, is blamed for the price hike.
Onion prices have reportedly surged across India due to a sharp decline in rabi stocks and the delayed arrival of fresh kharif stocks. Onion prices in New Delhi-NCR have reached ₹70 per kilogram, according to government data. This upward trend is likely to continue till December, bothering buyers.
The Union consumer ministry is releasing buffer stock onions to wholesale and retail markets in states where prices have surged. Since mid-August, 1.7 lakh tonnes of buffer onions have been offloaded in 22 states.