Part 6/8:
Typically, onion prices peak in October, before the new Kharif harvest begins, as stocks from the Rabi season deplete. This year, the low Rabi production has kept prices high for longer. Vendors in cities like Chennai are observing consumers changing their buying habits, resorting to purchasing onions from wholesalers for storage when prices are low, or shifting to substitutes like radish.
In some cases, consumers turn to dried onions or onion powder. However, the capacity for processing onions into dried forms in India remains limited, causing additional volatility in prices. The government attempted to address these fluctuations by imposing a six-month export ban on onions until May to stabilize domestic supplies.