Poor supply to Mumbai makes onion prices soar yet again | mumbai | Hindustan Times
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Poor supply to Mumbai makes onion prices soar yet again

mumbai Updated: Sep 17, 2013 08:47 IST
G Moinuddin Jeddy
G Moinuddin Jeddy
Hindustan Times

After a brief respite from skyrocketing prices, wholesale prices of onions are back to their mid-August levels of Rs 55-62 a kg from the earlier Rs 35-45 a kg, at the Agriculture Produce Market Committee (APMC) in Vashi.

In the retail market, too, onion prices have risen to Rs 70 a kg.

Traders said that a fall in supply was responsible for this sudden surge in prices.

“Mumbai needs around 10,000 quintal of onions every day. However, only 5,000 to 6,000 quintals are arriving at the market. It is because of this shortfall that prices have increased drastically,” said Ashok Walunj, director, APMC.

Walunj added that the situation was not expected to change for a month.

“Only after the new crop arrives will prices come down,” he said.

Even the arrival of onions from Egypt has not helped matters.

Following the arrival of Saturday’s consignment of 150 bags with 25 kgs of onions each, 300 more bags reached APMC on Monday. However, despite being cheaper than Indian onions, the price of the Egyptian ones escalated from Rs42-48 a kg on Saturday to Rs50-52 a kg on Monday.

Traders said a total of 4,400 bags of 100 tonnes each have arrived at Jawaharlal JNPT port in four containers. This stock is expected to arrive at the market during the week.

In mid-August, Hindustan Times had reported that traders had predicted a surge in prices after a temporary drop.

Wholesaler Ashok Karpe said, “Media reports and pressure from the government had led to the temporary fall in onion prices. But as stock was running out, prices were bound to rise.”

In the retail markets, too, prices of onions had increased in early August, touching Rs 80 a kg.

Although this fell to Rs 60 a kg by the end of the month, prices have risen again.