Following a decrease in supply, onion prices have increased. The price of the vital good has increased by about 60% to 80% during the past week.
The increase in onion prices, according to traders at the Agriculture Produce Market Committee (APMC) in Vashi, will control this price until the markets get fresh crops by the first week of November.
Onion prices have surpassed Rs 40 per kg in the retail sector, and dealers predict they will rise to Rs 50 per kg. Onion was priced between Rs 15 and Rs 25 per kg in the retail market at the beginning of the month.
The price Increase for onions, one of the key elements in cooking, may somewhat deflate spirits in the weeks leading up to the festival.
According to the APMC administration, the old stocks of onion are getting over and the present supply is from old stocks, not from farmers. “Since onions are arriving from the stocks (godown), the buying price is around 30 to 40 per cent higher than a fortnight ago. The buying price of onion is between Rs 15 per Rs 30 per kg,” said Munaf Patel, a trader. He added that the price will come down after new crops start arriving.
However, the price won’t stabilise until the Rabi crops begin to arrive in January or February of the following year. “70% of the overall production of onions comes from the Rabi onion. However, despite its small contribution, the Kharif onion is crucial in ensuring supplies throughout the lean months of September to November “Patel noted.
On average, APMC Vashi receives 140 to 160 trucks and tempos every day carrying onions. However, the supply has decreased over the past several days, and currently there are between 100 and 110 trucks arriving at the market each day.