Onion prices continue to rise across India as heavy rains affect harvest

The price surge in onions is expected to continue due to the ongoing heavy rains in Maharashtra, Karnataka, Telangana and Andhra Pradesh. The damage to crops and the delay in harvesting by up to 15 days are the primary reasons for this.

In various parts of the country, onion prices have reached up to Rs 65 per kilogram in wholesale markets, while in the state, retail prices range between Rs 55 and Rs 60 per kilogram. To reduce transportation costs, onions are being transported to North India by train. The government is intervening in North India to control prices taking into account the Diwali season.

The rise in the prices of onions, tomatoes and cooking oil is the main factor behind the increase in the inflation rate to 5.49 percent in September. Food inflation rose from 5.66 percent in August to 9.24 percent in September. The hike in import duties has also contributed to the increase in cooking oil prices.