Rupee falls to all-time low against US dollar
Notably, the rupee dropped to 85.0650 against the US dollar in early trade, compared to 84.9525 on Wednesday.
After tomatoes, it’s now onions that are expected to become pricier during the upcoming August-September festive season. Experts predict a potential rise from Rs 30 to Rs 70 per kg, mainly due to reduced planting during this season. As the onion prices go up, consumers are getting affected.
Onion prices have remained fairly stable over the past four months. However, the months of August and September typically mark a period of lower supply. The next onion harvest is scheduled for October. Official data shows that the typical retail price hovers around ₹25 per kg, known as the modal price.
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The onion prices often reflects the affordability for common people, and this might have implications for upcoming assembly elections in key states like Madhya Pradesh, Rajasthan, and Chhattisgarh later this year.
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According to a report, the shelf life of some onions has been shortened by 1-2 months. Panic selling in February-March has led to expectations of significant declines in rabi onion stocks in the open market by the end of August, rather than September. This extension of the lean season by 15-20 days might lead to tighter supplies and higher prices.
The situation is expected to ease once onion arrivals commence in October.
Traders in the onion industry mention that this year’s winter crop, which caters to 70% of the annual demand, hasn’t been as robust as the previous year. In times of crisis, India typically turns to onion imports. However, there were no onion imports in both the 2021-22 and 2022-23 periods.
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