Navi Mumbai: After tomatoes and green vegetables, it is onion that has affected the household budget. In the last fortnight, the price of onion has seen around 40 per cent rise and traders at the wholesale market. It will go northward in days to come and is likely to touch ₹60 per kg.
The average buying price of onion in the Agriculture Produce Market Committee (APMC) has risen up to ₹27 per kg which was ₹15 to ₹17 per kg around two weeks ago.
According to traders, onions stored in warehouses and other places by farmers were damaged due to excessive rainfall in several areas and even farmers brought excessive onions to the market during July which resulted in low stocks. “The panic selling is one of the major reasons for the dip in stocks and thus price started rising,” said an onion trader at APMC Vashi. He added that a dip in the rabi production in Maharashtra and other parts including Karnataka, has resulted in the price rise.
In addition, due to excessive rainfall, there was a delay in the sowing of onions in Andhra Pradesh and the yield is likely to be delayed. “The demand for onion has increased in Andhra and Telangana which is fulfilled by other states,” said the trader.
Onion supply reduced
Normally, the APMC Vashi receives around 90 to 140 trucks laden with onions per day. For the last two weeks, the supply has come down and the number of trucks arriving at the market is around 80 to 90 trucks, which is insufficient to meet the requirement. The Vashi APMC supplies essential commodities to the MMR area and a dip in supply affects its prices across the MMR.
Supply of tomatoes to increase by October
Meanwhile, the price of tomatoes has come down sharply in wholesale as well as in retail. The average buying price of tomatoes which was around ₹95 to ₹110 per kg has come down ₹50 to ₹65 per kg. Even in retail, the good quality tomatoes are available at ₹100 per kg which was around ₹180 to ₹200 per kg. “The supply will increase by mid-September and the price will be normalised by October,” said a trader from Vegetable Market.
