No tears from onions now, prices drop

Onion prices are falling in Navi Mumbai's wholesale market, dropping to ₹9-16/kg, but farmers worry about covering costs amid high retail prices.

NAVI MUMBAI: In a relief for home budgets, the price of onions has been falling. The increase in arrivals has helped bring the price down in the wholesale market, though the retail market is yet to react fully. The farmers are meanwhile worried at the continuous drop in price.

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Onion wholesale prices at the APMC market in Turbhe had gone up to ₹35-40 per kg last month, coming down to ₹12-26 in the beginning of the month. Continuing to fall, the price has now come down to ₹9-16 per kg. In the retail market, the price has not dropped as much as the retailers still have their earlier stock. It is selling for ₹35-40 per kg coming down from ₹40-45 per kg earlier.

The arrivals in the wholesale market have been increasing, outpacing the demand. Around 90-110 vehicles have been coming to the market daily, bringing around 25,000 bags of onions.

“The produce is over 30% higher from last year. It is coming in from Nashik, Ahmednagar, Pune, Satara and Sangli, and also from Rajasthan, Madhya Pradesh and Gujarat,” said Ashok Karpe, an onion wholesaler. “The price will remain low at least till April. With new crops coming and stocked onions expected in the market soon, the prices could drop further.”

However, farmers are worried. “The price has been falling substantially every week. At the present rate, we are hardly able to cover our costs. We need to get at least ₹20 per kg to earn something from the produce. However, the rate at which the price is falling, soon we will not be able to even recover our cost,” said Mangesh Suryavanshi, a farmer. “The government needs to remove the 20% export duty on onions to make them competitive in the international market. Pakistan is presently benefitting from this by pricing its onions cheaper.”

Suryavanshi added that since the summer produce lasts longer and can be stocked for up to eight months, traders will purchase them from the farmers at low price, stock up, and then sell them for a good price.

On the lower price impact not yet visible in the retail market, Sunil Yadav, a retailer in Vashi, said, “The price has marginally dropped. But we cannot immediately bring down the price in proportion to the prevailing wholesale price since we already have adequate stock that was purchased at a higher price.”