The reason behind the recent rise in onion prices has emerged, with onions selling for up to Rs200 per kilogram in Karachi, while the official commissioner’s price list sets the rate at Rs184 per kilogram. Smaller-sized onions are also being sold for around Rs150 per kilogram in some markets.
According to the report, onion prices typically rise between mid-September and mid-October every year as the supply from the existing crop declines and the Rabi crop reaches the end of its production cycle.
The country’s current onion demand is being met largely through supplies from Balochistan. To stabilize prices, onion imports are also expected this year, as has been done in previous years.
Another factor contributing to higher prices is the increase in petroleum costs. More expensive fuel raises transportation and other supply-chain expenses, which can ultimately affect the retail price of onions.
The arrival of the new crop from around mid-October is expected to improve supply and may help stabilize prices.
