A drastic fall has been reported in onion prices due to a slump in domestic as well as international demand amid the coronavirus pandemic and resulting lockdown and social distancing norms. Onion prices have fallen down from Rs.100/ kg in 2019 to Rs.10/ kg at present. Onion Prices had reached Rs100/ Kg in 2019 because of an enormous demand and comparatively lower supply.
Onion prices have already fallen down by 50% in the past 5 weeks and may reduce further in the coming weeks if there will be no interference on the part of the government. The online prices have crashed to Rs.8/10 kg in most of the Indian consumer markets. Earlier, the prices were operating around Rs.16-18 / kg. The excess production of onions along with the suppressed demand has to lead to its diminishing prices.
This drastic drop in onion prices is major because of the abundant harvest that leads to an increase in supply and simultaneously reducing the demand. The dropping prices have come as a big relief for customers who were forced to do away with onions in their kitchens. However, The section of the population who is affected the most is farmers who are finding it difficult to meet their basic survival needs.
Not only onion but the prices of many other commodities have fallen down in the midst of this pandemic because of reducing demand for products. It may come out as a benefit for consumers but the industries and businesses are bearing the brunt of it. Government intervention is needed to tackle the situation of falling prices.
In India, the rabi crop is more by 40%. However, there are many issues like lack of labor for grading and packing onions for storage and export. Lack of demand in India as well as for export due to prevailing lockdown conditions in most countries,' a veteran onion exporter said.