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Onion Prices May Stay High: Kharif Cultivation Falls to 1.30 Lakh Hectares, Supply Concerns Grow
Kharif onion sowing has declined by a massive 37%, leading to a supply shortage and price increases in the coming months. However, the government maintains that the situation will normalize with the arrival of new onions, and there is no need to worry about stockpiles.
Presently, there are onion prices going up but their availability is steady. They are available irrespective of the rise in prices. Although there is some respite in the form of buffer stock being sold by the government at ₹35 per kg, high prices of onion are expected to persist. In addition, there are speculations about the impact of onion availability. The reason cited for this is said to be due to fall in onion demand in the Kharif season.
This year, there has been a substantial decrease in onion cultivation in the Kharif season. As per the reports, approximately 1.30 lakh hectares of Kharif onion have been sown in the country till now, against 2.06 lakh hectares last year during this period. This indicates that there has been a 37 percent reduction in sowing area. As per the experts, major onion-producing states like Maharashtra and Madhya Pradesh have maintained the same area under cultivation this year as compared to last year. Approximately 30,000 hectares and 12,000 hectares of onion have been cultivated in Maharashtra and Madhya Pradesh, respectively, but there has been a reduction in Karnataka.
As reported by the media, onion area sowing has been done on approximately 68,000 hectares in Karnataka this year as compared to 90,000 hectares during the same period last year. The reason cited for the reduction in onion sowing area is low rainfall and water shortage.
