Last year too, there was a drought, and production was lower. Produce from the south had been acting as a price deflator in Maharashtra.
This year, crop arrival is expected to fall, which means cushion from crop availability will not be there in July-August.
Led by Karnataka, South India produces over 20 per cent of the total crop. In Gujarat, too, lower crop production by 10 per cent is a major concern.
High temperature is also affecting quality of the stored onions. The temperature affects the yield of standing crop and durability of the stored crop.
Prices of this commodity have largely remained under control, except a sharp fall in January-February because of a 50 per cent increase in production over the last five years, which has given enough cushion to the market.
Shah, however, said the stock position of onion is good and prices will not rise if the monsoon are normal. The Onion market also depends on wastages apart from monsoon. Wastage is estimated at 30 per cent, which is because crop durability is low, excess rain damages and increased temperature makes onions dry which hits quality.
This is apart from other damages like transport etc from which no vegetables are exempted.
Some crop loss can be easily handled by keeping wastages low.