Onion prices have again crashed. This may impact BJP's rewin chances in Rajasthan and Madhya Pradesh which would go for assembly elections shortly. Harvests from these two states would hit the market right at the time of the elections.

 

Both these states are among the major producers of the bulb along with Karnataka, Maharashtra, and Gujarat.

 

Huge carry-forward stocks, poor demand from exporters, and supply disruptions in consuming states like Tamil Nadu and Kerala on account of Cyclone Gaja have impacted the prices.

 

In some markets, including Yeola in Maharashtra, the modal prices for old and inferior crop fell as low as Rs325 per quintal on Thursday - a record low for the comparable month of November in several years. But this is also undermining the prices of fresh arrivals ruling currently at Rs 1,500 a quintal.

 

Prices are feared to face further downward pressure in December, January, February, and March when supplies from Northern, Central, and Eastern India arrive in the markets.

 

This may impact the mood of farmer-voters at the time of national election 2019 in April-May.