As Onion Prices Hit The Sky, Will High Rates Burn Hole In Consumers' Pockets In Festive Season?

Traders have expressed concerns that this price surge may persist in the months to come that will put increasing pressure on both households and restaurants.

New Delhi: Weeks after soaring tomato prices threw the kitchen budget into total disarray, it is time for onion prices to make you weep. Rates of this household staple are on the rise, posing challenges for both home kitchen and restaurants as they gear up for upcoming festivities. 

This marks the second occasion in the past four months where onion prices have surged. The first spike occurred in August when the staple exceeded the Rs 100 mark. This, combined with the earlier substantial hike in tomato prices, is straining kitchen budgets. The impact of soaring onion prices is especially harsh for families already grappling with financial difficulties.

Traders have expressed concerns that this price surge may persist in the months to come. Over the past week, retail market onion prices have doubled, soaring from Rs 30-35 per kg to Rs 60-80 per kg.

The surge in onion prices can be attributed to several factors. Wholesalers point to adverse weather conditions earlier this year, including heatwaves and irregular rainfall, which led to a poor onion crop and subsequently higher wholesale prices.

News Agency IANS has reported that several restaurants have already removed onions from the salad plates while street food sellers have also cut down on the use of onions.

Najmul Hasan, who runs a restaurant in the old city, said, “The increasing onion prices are putting a lot of pressure on our business. Onions are a significant ingredient in our non-vegetarian dishes, and when their prices rise, it affects the quality of our food. Unlike bigger restaurants, we cannot charge extra for salads and onions, and this is making it hard for us to stay profitable,” IANS quoted.

Pappu Sonkar, a dealer at Sitapur Mandi, explained, “We are currently getting only 20-30 truckloads of onions in the local market. A recent strike by onion traders in a neighbouring state also disrupted the supply, leading to a hike in prices,” said IANS.