After skyrocketing for over a month, the prices of onions finally started falling on Friday, as fresh produce from Karnataka and Egypt landed at the wholesale APMC markets at Vashi and Lasalgaon.
But it’s not all good news, as household consumers said the drop in wholesale prices has not yet affected retail rates.
Wholesale prices of good quality onion fell from Rs61 to Rs55 a kg. In a week, the vegetable could cost another Rs5 less. The price of average quality onions was Rs52 on Friday.
“The new crop has started arriving from Bangalore, and imported onions from Egypt are also available. The prices may reduce further reduce by next week,” said Ashok Walunj, Agricultural Produce Market Committee (APMC) director and a trader.
At Lasalgaon, onion prices ranged between Rs25 and Rs55.99 a kg, depending on quality.
“Onion prices are gradually going back to what they were a month ago,” said an official from the APMC at Lasalgaon.
The very high prices for more than a month also brought down consumption of the essential vegetable. This, in turn, reduced demand and prices. “The onion prices increased to a level where demand fell, leading to decline in prices,” said Manoj Jain, a trader from the APMC wholesale market at Lasalgaon.
Consumers, however, said prices of onions are still high in the retail market. “Retailers immediately hike rates when there is an increase in wholesale prices, but they don’t reduce them, when wholesale prices go down,” said Sumita Parab, a Wadala resident.