Increasing onion prices expected to plummet post Diwali

The prices of onions, which have continued to soar in the wholesale and the retail markets across the country in the past few days, are expected to plummet post Diwali.

"Increase in diesel prices and strikes led to a surge in onion prices. Now that the strike is over, one can expect the rates to come down," said Riyaz Ahmad, a wholesale dealer in Ghazipur Mandi.

The wholesale onion traders believe that a widening gap in the demand and supply of onions, hike in diesel prices, and transport strike were the primary reasons for the surge.

As the average wholesale onion prices have increased by 80 percent in the past 10 days at the Lasalgaon Agriculture Produce Market Committee (APMC) and are expected to rise even further during Diwali, the common man have been left in distress.

According to consumers, onion is a necessity and the increasing prices are a cause of worry.

The essential commodity which was earlier sold at approximately Rs. 30 per kg in the retail market saw a 100 percent increase in one week. Moreover, the average wholesale onion price went up by Rs. 8 to 10, one seller at the market said.

Another dealer is of the opinion that the onion prices will rise slightly during Diwali but are expected to come down to Rs. 26 to 28 per kg post Diwali.