Now Reading: Onion prices surge 25% as government procurement lags
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Onion prices surge 25% as government procurement lags
Wholesale onion prices at Lasalgaon mandi have jumped 25% in a week to an average of Rs 27 per kg, with top-quality onions at Rs 30, the Economic Times reports. The surge…
The Story in Brief
Wholesale onion prices at Lasalgaon mandi have jumped 25% in a week to an average of Rs 27 per kg, with top-quality onions at Rs 30, the Economic Times reports. The surge comes as government procurement lags far behind its 200,000-tonne target. As of July 7, barely 13,000 tonnes had been bought, says the Hindustan Times, though later relaxations pushed the total to 115,000 tonnes. Procurement was slowed by a system overhaul that shifted storage to the Central Warehousing Corporation and strict quality norms, coinciding with unseasonal rain damage. The sources disagree on the number of price hikes: the Hindustan Times says six, the Economic Times says seven. Onion inflation hit 22.5% in July.
The Indian Opinion
The government’s decision to split storage from procurement was meant to check corruption, but its timing, a year of rain-damaged bulbs, backfired. Strict quality norms stalled stock-building until the rules had to be relaxed. Neither the reform nor the weather alone is to blame; the mismatch between a new system and a bad crop is the real story. Whether September rains further spoil the delayed kharif harvest will decide if prices stay firm or soften.
Sources (2): hindustantimes.com, economictimes.indiatimes.com
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
