Not just smog but onions too will leave you teary-eyed this Diwali

Onion prices are expected to remain high throughout the Diwali season as heavy rains in key growing states have damaged crops and delayed their arrival in the market. Onions are currently selling for Rs 60-80 per kg in retail markets, and the impact of weather disruptions is likely to keep prices elevated.
Recent rains in major onion-producing states such as Maharashtra, Karnataka, Telangana, and Andhra Pradesh have had a negative impact on the crop. These states have faced heavy and persistent rainfall, which has affected the quality of the onions and delayed their arrival at the markets. The result is tight supplies and higher prices.
In Maharashtra’s Lasalgaon, which is the largest wholesale onion market in the country, wholesale prices have been around Rs 45-50 per kg for over a month. The government was expecting prices to drop with the harvest of the kharif (monsoon) onion crop, but heavy rain has caused problems. In some areas, fields have been waterlogged, delaying the harvest by 10 to 15 days, adding pressure to the supply chain.
Experts predict that onion prices will remain high for at least two to three weeks. Vikash Singh, an onion exporter from Maharashtra, told The Economic Times, “The harvest of the kharif onions would be delayed in the areas that have been getting rainfall, which could keep the onion prices firm for at least two to three weeks.”
In response to the situation, the government has taken steps to control onion prices. It has started selling onions from its buffer stock to bring some relief to the market. Additionally, a special ‘kanda train’ has been deployed to transport onions from Nashik to Delhi, reducing transportation costs and increasing supplies in northern India.
However, traders in southern states continue to face challenges. According to Tonkini Pramod Kumar, an onion trader in Hyderabad, the quality of onions has suffered due to heavy rains in areas like Kurnool and other parts of Telangana and Andhra Pradesh. “The quality of onions has been damaged considerably due to heavy rainfall,” he said.
The rise in onion prices, combined with increases in the costs of other essential items like tomatoes and cooking oils, has pushed up India’s food inflation. In September, inflation reached a nine-month high due to the surge in food costs. Retail inflation, which had eased to a five-year low of 3.65% in August, jumped to 5.49% in September.
Food inflation, which makes up around half of the Consumer Price Inflation (CPI) calculation, climbed from 5.66% in August to 9.24% in September. The increase in prices has affected household budgets across the country, particularly during the festive season.
In addition to onions, cooking oil prices have seen a rise. After two months of stability, edible oil prices went up in September. This was partly due to an increase in import duties by the Indian government. The global market also saw a rise in palm oil prices, which has affected the local market.