Mumbai: Buying vegetables in small markets on the outskirts of Mumbai, Shubhangi Patil Laments, a recent rapid increase in the cost of everyday essence, from cooking oil to sugar and now onions, basic ingredients in most Indian food.
After the cost of fuel and oil that can be eaten to reach the highest record, consumers such as Patil are likely to be extended further with rally with the price of onions after heavy rains in the country’s main areas damage the sown of winter plants and instill planting winter plants.
Onion is also a politically sensitive commodity, with price nails contributing to the fall of more than one state government in the past.
“The price of each essential commodity has risen.
Eaten oil, the price of sugar rises before and now onions and tomato prices has more than double in two weeks, how can someone manage the monthly budget when income does not rise?” Patil said.
India is also the largest onion exporter in the world and price increases can request New Delhi to limit shipping, potentially raised further prices, especially in Bangladesh, Nepal, Malaysia and Sri Lanka, traders said.
“Too much rainfall in September caused disease attacks and the growth of the onion tuber,” said Samadhan Bagul, a farmer from the Dhule District, almost 325 km north of Mumbai, who hoped to harvest only a ton of onions from the usual hectare of land of land.
The main producing countries such as Maharashtra, Madhya Pradesh, Gujarat and Karnataka received rainfall of 268% more than normal in September, according to the weather department.
Plant damage is limited limited supply, more than double the wholesale price in the largest onion trade hub in India, Lasalgaon in Maharashtra, up to RS 33,400 ($ 444.82) per ton in just a month.
The retail price in the Metro field as Mumbai has surged above Rs 50 per kilogram.
The price of onions tends to remain strong during the current celebration season before being moderate starting from mid-January when supplies rise from new season plants, said a Mumbai-based dealer, who refused to be named.
Higher Indian prices have encouraged importer countries to switch to other suppliers such as Turkey and Egypt, said Ajit Shah, President of the Association of Mumbai-based onion exporter.
India prohibits the exports of onions in 2019 and 2020 for several months to calm local prices, creating deficiencies in neighboring countries such as Bangladesh and Sri Lanka.
The government has also tried to reduce food prices this year and have taken steps such as Custom Cutting to reduce edible oil costs.
“India can prohibit exports as in the past if the government feels the price of onions has risen too much and too fast,” said the exporters of Mumbai-based onions.