Should you prepare for onion price volatility? 

Sandeep Singh

Jul 05,2024

Sufficient and timely monsoon rains have supported kharif season crops such as onions this year.

The domestic area earmarked for sowing of a slew of vegetables such as onions has increased significantly in comparison to last year.

The availability of onions in the domestic market is “comfortable” notwithstanding marginally lower production of the crop in the 2024 rabi season, according to an official statement.

The target area under kharif onion stands at 3.61 lakh hectares this year, up 27 per cent over last year.

Thirty per cent of sowing is complete in the country’s largest onion-producing state, Karnataka, out of its targeted area of 1.5 lakh hectares.

Kharif season onion production plays an important role in maintaining price stability in the domestic market in the lean months.

Which months are considered lean in the context of onion production? The period between the seasonal arrival of rabi and peak kharif crops are known as lean months.

Did you know? While the rabi crop accounts for roughly 70% of the country's total production of onions, the remaining 30% is grown in the kharif and late kharif seasons.

Onion is harvested in three seasons in India: rabi (March-May), kharif (September-November), and late kharif (January-February).

Which onion is available in July? The onion currently available in the market is the 2024 rabi season crop (harvested during March-May this year).

Dry weather conditions prevailing during and after the rabi harvest this year are observed to have helped in lowering any storage loss of onion. 

Onion prices are stabilising as the quantity of rabi onion released in the market by farmers is increasing with higher mandi prices and onset of monsoon rains, the statement added.

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