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Indian Government Anticipates Stable Onion and Potato Prices with Increased Kharif Production

by Devendra Kumar
July 7, 2024
in Market, News, Onion, Retail, Tomato
0
Indian Government Anticipates Stable Onion and Potato Prices with Increased Kharif Production

With a keen focus on the upcoming kharif season, the Indian government is optimistic about maintaining stable prices for onions and potatoes. A significant rise of nearly 27% in the area dedicated to onion cultivation and a 12% increase in potato sowing are expected due to favorable monsoon conditions, instilling confidence in price control measures.

Moreover, the kharif tomato cultivation area surpasses last year’s figures, with promising crop conditions observed in Chittoor, Andhra Pradesh, and Kolar, Karnataka. The harvesting of tomatoes has commenced, signaling their imminent arrival in the market within a few days.

Authorities predict a moderation in tomato prices over the next 7-10 days, offering relief to consumers. Onion prices have stabilized over the past week and are likely to decrease further as farmers release more Rab onion stock into the market, driven by higher mandi prices and the onset of monsoon showers. Data reveals a marginal increase in the average wholesale onion price from Rs 3,397 per quintal on July 1 to Rs 3,474 recently.

Notably, the transportation of onions from Nasik to Delhi has surged, indicating an uptick in supply that is expected to drive prices down in the coming days. The Department of Consumer Affairs, in coordination with state governments, aims to achieve a significant sowing target of 3.6 lakh hectares for kharif onions this year, a notable increase from the previous season’s 2.8 lakh hectares. Leading onion-producing states like Karnataka are making substantial progress, with 30% of the targeted 1.5 lakh hectares already sown. Maharashtra and Andhra Pradesh are also witnessing favorable sowing conditions.

Karnataka‘s proposal to expand onion cultivation to 1.7 lakh hectares has been well-received by the government, given the conducive climatic outlook. Additionally, states like Bihar and Odisha have committed to cultivating onions on 1,250 hectares, contributing to the overall efforts to stabilize onion prices and ensure food security in the country.

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