Onion prices in Maharashtra declined after the imposition of export restrictions by the central government, which set a minimum export price (MEP) of $800 last Saturday.
A recent supply shortage triggered by an inadequate monsoon has pushed up onion prices nationwide, prompting the government to release stocks from its reserves to stabilize prices during the peak festive season.
The imposition of MEP has shown an “immediate impact of price correction in Maharashtra markets, where prices recorded a decline of 5% to 9% from the highest price registered during last week,” the consumer affairs ministry, which monitors prices of 22 essential food items, said in a statement.
Onion prices have more than doubled within a fortnight in several states. In the national capital, onions are currently retailing at ₹80 per kg, up from ₹60 per kg last week and ₹30 per kg two weeks ago. Similar price surges have been observed in cities such as Chandigarh, Kanpur, and Kolkata.
Deficient monsoon rains during the June-September period damaged the kharif onion crop in Maharashtra and Karnataka, two major onion suppliers. This has delayed harvests while stocks from last winter have nearly depleted, thus driving up prices.
The government on October 28 imposed curbs on onion exports, setting a minimum export price (MEP) of $800. Supply-chain intermediaries are concerned that onion prices could continue to rise as supplies dwindle due to delays in the harvesting of the summer-sown crop.