Shubhangi Patil, who is buying vegetables from a small market near her house on the outskirts of Mumbai, is shocked to hear the price of these things. From oil and sugar to now onions, the prices of all the things of daily need are sky-high.
Onion has been a politically sensitive item in India. Its prices have already been dropped by many governments. Patil says, "Every essential thing has become expensive. Earlier, oil and sugar became expensive. Now, the price of onion and tomato has doubled in two weeks. If earnings are not increasing then how will one handle the budget for the month?"
With the prices of fuel and cooking oil reaching heights, the burden of onions for common Indians like Patil is taking life in the pocket. The recent heavy rains in different parts of India have not only damaged the summer crop but also delayed the sowing of the winter crop.
Samdhan Bagul, a farmer from Dhule district, about 325 km from Mumbai, says, "September received heavy rains, causing the disease to strike and crop loss." Bagul, who harvests from one acre to five tonnes, is expecting only a one-tonne crop this year.
Apart from Maharashtra, Madhya Pradesh, Gujarat, and Karnataka are the largest onion-producing states. It has received 268 percent more rainfall than normal in September. If the crop is damaged, the supply is affected. Therefore, the price of onion in Maharashtra's Lasalgaon, the largest wholesale market of onions, more than doubled to Rs 33,400 per tonne in a month. As a result, love is being found in the markets of Mumbai for more than 50 rupees per kg.
Experts estimate that in the current days of the festival, the prices of onions are not going to come down. According to a Mumbai-based trader, onion prices will remain the same until at least January, until the new crop arrives.
India is the largest exporter of onions, but despite the rise in inflation, the government has not imposed any restrictions on exports. Traders say that the impact of rising prices in India will also affect Bangladesh, Nepal, Malaysia, and Sri Lanka.
Exporters are also suffering the loss of rising prices in India. Ajit Shah, president of the Mumbai-based Onion Exporters Association, says importers are now shifting to other suppliers like Turkey and Egypt.
Onion prices had increased a lot in 2019 and 2020 also. Then the government had banned exports for a few months. Due to this, its neighbors like Sri Lanka and Bangladesh also faced shortages.
A similar step can be taken this year as well. According to a Mumbai-based onion exporter, "If the government feels that the prices are rising too fast and too much, then exports can be banned."
The government is trying to bring down the prices of food items. Steps have been taken like reducing the tax on edible oils.
