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Are onion prices also tipped to go the tomato way? Well, if a research by Crisil is to be believed, they indeed are.
The study, released on Friday, indicated that the shelf life of rabi onions has reduced by one to two months due to panic selling in February and March 2023. As a result, the stocks from the last rabi season may significantly deplete by the end of August, rather than September.
Such a scenario could extend the current lean season by 15-20 days, potentially tightening supplies and driving prices upwards, the report added.
According to the report, prices could significantly surge to around Rs 60-70 per kg during this lean period.
Currently, the retail price of onions in Delhi markets is approximately Rs 30 per kg, as per the data from the Department of Consumer Affairs. If Crisil's report holds true, prices could double by the end of the month.
However, the report also shared some positive news, stating that the anticipated price spike would still remain below the highs witnessed in 2020. More importantly, prices are expected to start declining once the kharif crop arrives in the market from October onwards.
Despite this, the report cautioned that the rainfall in August and September would play a crucial role in determining the transplantation and bulb development of the kharif onion crop.
"Price fluctuations during the festive months (October-December) are expected to stabilise, compared to the high prices in September," the report concluded.
