After tomatoes, onions have become the latest daily commodity which is set to burn a hole in the pockets of consumers as the prices of the essential vegetable is rising slowly but steadily across the country, even hiked by Rs 20 in some states across India.
While the rise in the prices of tomatoes was attributed to low yield due to extreme weather conditions, the price hike of onions is being linked to a recent big move imposed by the Centre, which led to the overall retail price of the commodity being hiked by Rs 3 across the nation.
The Finance Ministry recently said that the government has decided to impose 40 percent duty on onion exports till December 31 this year. This move is applicable immediately, leading to the rise in the prices of onions across all the states in India.
Onion prices have continued to rise each day during the month of August and are expected to be on an upwards trajectory throughout September, with the prices expected to rise by over Rs 15-20 by the end of next month, as per experts.
While the tomato prices had stabilized in northern India after a sudden and exponential rise, they also recorded a significant hike in the month of August, said a bulletin released by the Reserve Bank of India. The RBI further noted that onion and potato prices have also seen a sequential rise.
Earlier on August 11, the central government started releasing the staple vegetable from its buffer stock. The central government had earlier decided it will maintain 3 lakh tonne of onions in the 2023-24 season as buffer stock. In 2022-23, the government maintained 2.51 lakh tonne onion as buffer stock.
Meanwhile, it is expected that onion prices across the country will rise by Rs 15 by the end of September, leading to a significant hike in its prices due to the onion export duty.
(With inputs from agencies)
READ | Centre imposes 40% duty on onion export as prices rise
