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September 09, 2021

Onionomics: As rains drop, fears of tears

Bulbs, buffers and breaks in monsoon

 

Onions, a staple in most Indian households, are likely to make consumers cry again with erratic monsoon leading to an eventual delay in harvest. Delay in arrival of the kharif crop and shorter shelf life of the buffer stock because of Cyclone Tauktae are likely to fuel a rise in prices.

 

On average, India consumes an estimated 13 lakh tonne of onion every month. To meet this demand, the crop is grown in three seasons: Kharif, late kharif and rabi. This makes it available for most of the year.

 

Maharashtra, Karnataka and Andhra Pradesh are major kharif onion-producing states, contributing over 75% of total kharif onion production.

 

The bulb’s supply and price dynamics are largely dominated by climatic conditions, especially the southwest monsoon. While rabi onion contributes to 70% of the total onion production, the kharif onion plays an important role in maintaining supply during the lean period of September-November, which is a major festive season for India.