Onion becomes four times more expensive in two weeks on supply squeeze

Flood and rainfall in Gujarat, Madhya Pradesh have added to the woes

Onion prices have quadrupled in the past two weeks due to lower supply, as farmers and stockists held their inventory on expectations of a further price spike. As the Nashik farmers are shifting to other horticulture crops, including grapes, pomegranate, the crop size prospects have lowered in the ongoing Kharif sowing season. This has pushed up onion prices since the second week of July.

Data compiled by the National Horticultural Research & Development Foundation (NHRDF) showed onion prices in Lasalgaon hit the highest in two years of Rs 26.60 a kg on Thursday before moderating abysmally to trade at Rs