Navi Mumbai APMC Hit: Onion, Potato Prices Drop ₹3–₹5 As LPG Shortage Shuts Hotels, Demand Slumps

Navi Mumbai, April 1: With hotels and eateries shut, the onion and potato market takes a hit, with sales and rates both going down. The ongoing international war situation, which has led to the shortage of LPG gas, has begun impacting not only the hospitality sector but also the onion and potato trade at the Agricultural Produce Market Committee (APMC).

Impact on wholesale trade

"The LPG shortage has severely disrupted hotel operations, forcing many establishments to either shut down or limit their services. This has significantly reduced bulk consumption of onions and potatoes, directly affecting wholesale traders. Due to the lack of demand, we have reduced the arrivals. The sale of bulk categories has drastically reduced, leading to accumulation of unsold stock in the market," Abdul Razak Memon, a trader from Onion Potato Market.

Sharp decline in arrivals and sales

Market data indicates a sharp fall in offtake. A month ago, around 120 to 150 trucks of supply used to arrive daily and would get sold off completely. At present, even 60 to 70 trucks of arrivals are not getting fully cleared. Similarly, daily sales have dropped from nearly 22,000 sacks per day a month ago to barely 10,000 sacks now.

Price drop amid weak demand

Overall, traders estimate that onion and potato prices have fallen by Rs 3 to Rs 5 per kg compared to a month ago. "Not just hotels but small eateries of vadapav and misals have shut due to lack of availability of the LPG cylinder, which has hit the sales of both onion and potato," Memon added.

“Due to export restrictions to Gulf countries, onions are arriving in APMC markets. At the same time, the lack of demand from the hotel industry has resulted in onions lying unsold in the market. Retail demand is also weak. With supply exceeding demand, onion prices have declined. If the situation does not improve soon, concerns among traders and farmers are likely to grow further,” said Sunil Adsul, another onion trader at APMC.

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