November 26, 2019 | Investopaper
The price of onion has skyrocketed in the Nepalese market lately. Consumers are forced to purchase the onion at above Rs. 230 per kg in the retail market.
The price of onion has increased by more than 500 % in a period of one year. In the Mangsir of last year, the per kg price of onion stood at Rs. 31, as per the Kalimati Fruits and Vegetable Market Development Board. At current, the wholesale price of onion is Rs. 190-200 per kg.
The reason for the spike in the price of onion is due to the band in the imports from India. After the protest from the citizens due to the high price of onions, India has banned the export into other countries since Ashwin.
The traders have illegally imported the onions from India. However, the price has significantly risen due to the less supply.
Nepal is heavily dependent on India for the onion as only 2 percent of the demand is fulfilled through the local production. The remaining 98 percent of the demand for onion depends on the import from India.
The price of onion is expected to rise further, as per the traders of Kalimati.