Onion Price Hike News: Know why Onions are getting expensive

Onion Price Hike Reason News: The recent surge in Onion prices have been a setback for common people as it is one of the main vegetables that is mostly used in all the food items. It is not for the first time that the price of onions have increased. There is always a fluctuation in the price of onions. In 2023, ahead of the festive season, the price of onions has gone up which is a worrisome situation for the common man. 

Likewise, households across India are shocked as the price of onions has been rising. A few months ago, the price of onions was at around Rs 5-10 per kg in several parts of the country while the same price now has rose up to as high as Rs 100 per kg. 

Due to the price hike of onion, people were forced to think the reason behind the same. Why are onions getting expensive and what is the reason behind it? Let's find out. 

Usually, there is never just one factor that can be held responsible for the Onion Price Hike. There are always multiple factors behind the same and these include gap in demand and supply, and a delay in cultivation. Reportedly, a lot of farmers who grow onions, prefer selling them to the international market in an order to earn more money that results in shortage of supply in the country. 

In the meanwhile, the government has also introduced an export tax of 40 percent which was nil, earlier, in an order to regulate the international sale of home-grown onions. It is pertinent to mention that the Minimum Export Price (MEP) for onion exports has been capped at Rs 66.730 per tonne; till December 31. It means no trader would be able to export onions at a lesser price.

The other reason that may have triggered the Onion Price Hike, could be delay in cultivation. A senior government official had told PTI that there was a delay in the sowing of kharif onion because of the unfavorable weather conditions resulting in lower cultivation and late crop arrival. This is being considered as the main reason behind the increase in price of onions in the country.

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