New Delhi: Onion prices have surged in recent weeks, spoiling the domestic budget of many homes and driving up the prices of thalis in India. However, there is unlikely to be any respite from this in the near term. According to an ICICI Bank report, onion prices are likely to remain stubborn in the near term. To be sure, overall vegetable prices have eased 4.1 per cent on the month in November, according to the report.
However, on an annual basis, vegetable prices were up 42 per cent. Overall, current prices were the highest in 57 months, according to the report. While onion prices were up 52 per cent year-on-year, potato prices rose 65 per cent during the same period. Tomato prices were up 161 per cent year-on-year. Prices of essential vegetables spiked ob account of heavy rains in the months of August-September. Since these vegetables have a shorter lifespan, rains disrupt the supply chain, driving up prices.
Restaurants, eateries cut back on onions
Restaurants and eateries have cut back on onion usage in theri preparations. While roadside stalls in Naharashtra have stopped making onion bhajia, a staple snack, restaurants are supplementing or even substittuing onion in salads with cabbage, the TOI reported. Hoteliers are using new onions in preparations and reserving old onions, which have a better texture, in salads, according to the report.
Thali prices on the rise
Veg thali prices surged more than 20 per cent to Rs 33.3 per kg in October from Rs 31.3 per kg in the year ago period. Non-veg thali prices were also up to Rs 61.6 in October from Rs 58.6 in the year ago period. According to CRISIL, onion, tomato and potato prices were the main contributors to thali prices in October 2024.
Onion prices have brought tears to the eyes of consumers and led to a spike in overall inflation. ICICI Bank says higher onion prices are here to stay. Here’s why Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
