Key Points
NEW DELHI : Onion prices, which are sharply higher this year, are likely to stay elevated, with scanty rains hurting production of the kitchen staple..
Onion output in the 2023-24 crop year may fall 15.6% to 25.4 million tonnes (mt) as key growing regions received weak rains, the agriculture ministry said..
Inflation will remain elevated due to higher prices resulting from lower output this year," said Madan Sabnavis, chief economist of Bank of Baroda..
However, going ahead, prices are expected to remain elevated as the acreages under rabi onion are estimated to have significantly declined on-year, which will impact the output for the crop and, in turn, the market supplies," Sharma said on Wednesday..
Despite this, the government has pegged the total production of vegetables in the 2023-24 crop year on par with last year at 209.14 mt, on expectations of higher output of cabbage, cauliflower, pumpkin, tapioca and tomato..
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