Onion prices have risen following a dip in supply. The essential commodity has seen around a 60 to 80 per cent rise in the last week.
According to reports, traders at Agriculture Produce Market Committee (APMC) Vashi say the rise in onion prices will command this price till the fresh crops arrive in the markets by November first week.
In the retail market, the price of onion has crossed Rs 40 per kg and traders say it will increase up to Rs 50 per kg. At the beginning of the month, onion was available between Rs 15 to Rs 25 per kg in the retail market.
Ahead of the festival, the rise in onion price will dampen the mood to some extent as the commodity is one of the important ingredients in the kitchen.
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 will stabilize only after the Rabi crops start arriving by January-February next year. “The Rabi onion contributes to 70 per cent of the total onion production. At the same time, the Kharif onion contributes very little but plays an important role in maintaining supply during the lean period of September-November,” said Patel.
Normally, APMC Vashi receives around 140 to 160 trucks and tempos laden with onions per day. However, for the last few days, the supply has come down and the number of trucks arriving at the market is around 100 to 110 trucks.