In Pune onion prices are Rs 70 per kg on 21th August, onion is selling at the same price as average quality rice in the city. Some traders said prices would peak to Rs 100 per kg, this season. The last time onion prices touched such a peak in the city was in 2011-12, when the wholesale prices were Rs 80 per kg and retailers were selling it for Rs 95 per kg.

Because of inadequate rainfall in the onion-growing belt has hampered production, affecting supply to the city. Traders expect the trend to continue for a couple of more weeks. The good quality, dry variety costs even more in the city's wholesale market. According to officials in the city's Agriculture Produce Market Committee, only 25% of the average expected supply at this time of the year is reaching the market. It has pushed up wholesale prices from Rs 40 per kg on August 13 to Rs 58 per kg on 21th August.

"The entire onion growing belt has had poor rainfall. The new crop is not of expected quality and is commanding not more than Rs 30 per kg in the wholesale market. Farmers are hoarding good stock. While we usually receive more than 50,000 bags every day. But in the last few days, a mere 10,000 bags have been arriving at the wholesale market which has pushed up the prices," N D Gule, in charge of the market committee's fruits and vegetables sub-division, said.

Source: http://timesofindia.indiatimes.com