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Onion prices up by 50%; high demand, low supply to blame
Onion prices have doubled in wholesale and retail markets due to lower arrivals caused by crop shortage. Traders predict prices could reach ₹50 per kg.
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NAVI MUMBAI: Onion prices have shot up in both wholesale and retail markets, bringing tears to the eyes of the common man already burdened with inflation. The hike has been more than double the price when compared to the start of the month. It is likely to increase further. On Thursday, onion was sold at ₹40-45 per kg in the wholesale APMC market in Vashi and at ₹70-75 per kg in the Vashi retail market. The prices were ₹25 per kg and ₹30-35 per kg respectively at the start of the month.
Traders are attributing the hike to lower arrivals due to crop shortage. Said Ashok Karpe, an onion trader, “This year the rains were late and also not adequate overall in the onion producing areas of Nasik, Nagar, Solapur etc. This has led to much less production, in fact only about 30% of the usual production.”
He added, “The produce, while less in quantity, is not of very good quality either.”
Informed Karpe, “There is some old stock still with the small farmers, who are sending their produce. Next month, the government will have to import onions to meet the demand.” Said Manohar Totlani, another trader, “The stock that is coming is of last year actually as Maharashtra’s onion is of good quality and lasts long. It is about 20% of overall production since last year and will last around 2 months only.”
He added, “The new crop will come after around two months, but will be limited in quantity. The market will remain tight. I think the price will touch ₹50 per kg in our wholesale market in a couple of days.”
The retailers say they have little option but to increase the price. Said Ajay Gupta, a vegetable vendor in Vashi market, “There is little supply in the market and the produce is also not of good quality. A lot of what we bring rots. Hence, we have to increase the price, to make sure we do not suffer losses.” He added, “The customers are obviously unhappy at the sudden surge and are blaming us. They are also buying much less quantity.”
Said Smita Patil, a local resident, “Every time you come to the market, something or the other becomes costlier. Now onions, without which we cannot cook anything. How do we manage our household budget? There seems to be no respite.”
