Navi Mumbai: There has been a significant surge in onion prices due to a decrease in supply. This essential commodity has witnessed an almost 100 percent increase in the past month. Traders at the Agriculture Produce Market Committee (APMC) in Vashi predict that the upward trend in onion prices will persist until the arrival of fresh crops by the end of November.
In the retail market, the price of onions has surpassed ₹45 per kilogram, and traders anticipate it could reach as high as ₹60 per kilogram. Just a month ago, onions were available for a much lower price, ranging from ₹15 to ₹25 per kilogram in the retail market.
The impending festival season is likely to be impacted by the rising onion prices, as this essential ingredient plays a pivotal role in many kitchens.
Depletion in current onion stock
According to the APMC administration, the existing stocks of onions are depleting, and the current supply is primarily from stored stocks rather than fresh harvests from farmers. A trader mentioned that because most onions are sourced from warehouses, the purchase price has increased by approximately 30 to 40 percent in the past two weeks. Presently, the purchase price of onions ranges from ₹25 to ₹45 per kilogram. However, prices are expected to decrease once the new crops start arriving in the market, which is anticipated in the first or second week of November.
A more stable price environment is likely to prevail after the arrival of Rabi crops in January-February next year. Rabi onions account for 70 percent of the total onion production, while Kharif onions, which contribute very little, play a crucial role in sustaining the supply during the lean period of September to November, according to the trader.
Slump in onion supply
Normally, APMC Vashi receives approximately 140 to 160 trucks and tempos laden with onions per day. However, in recent days, the supply has decreased, with only about 100 to 110 trucks arriving at the market.
Comparison of wholesale price of onion:
September 26, 2023: ₹10 to ₹25 per kg
October 25, 2023: ₹25 to ₹45 per kg
