Onion Prices and Economic Impact

Onion prices in India have recently surged, exceeding 55 rupees per kg in major markets, indicating a significant rise from the previous month's price of 40 rupees. This recurring fluctuation in onion prices is not only a household concern but also has broader implications for the economy, affecting food inflation and the Consumer Price Index where vegetables account for a notable weight. Factors contributing to this spike include adverse weather conditions, particularly heavy rains in Maharashtra, which threaten harvests and storage, exacerbating supply issues. Additionally, the government's interventions regarding export policies and handling of perishables play a crucial role in stabilizing or destabilizing prices, further highlighting the interconnectedness of local supply chains and agricultural health in India.