Unseasonal rains in Maharashtra last year have led to a 50% fall in onion production, resulting in a rise in the prices of the kitchen staple in wholesale and retail markets.
Since the first week of February, onion prices have shot up to ₹30-₹35 per kg from around ₹15-₹25 per kg at the wholesale market of the Agricultural Produce Market Committee (APMC) in Vashi. Similarly, retailers who were selling onions at ₹35-₹40 per kg have increased the rate to ₹50-₹55 per kg.
“There had been unseasonal rainfall in October and November last year which damaged the crops in large numbers. The onions now in the market are from old stocks as most of the new crops have been destroyed in the rains,” Ashok Walunj, director of the onion-potato market, APMC, said.
Because of the less production, traders are not able to export the produce. “The government has lifted the ban on the export, but we do not have enough stock. The losses we are incurring are huge this year,” a wholesale trader from the APMC market said.
Usually during this time around 125-150 trucks of onions are expected to arrive in the market every day, but the number has gone down to 75 trucks, Mr. Walunj said. “The produce is coming from some parts of Pune, Nashik and Ahmednagar,” he said.
It is expected that the prices might further increase by ₹5 per kg in the coming days. “Once the summer season kicks in, the prices may be stable. But it will become worse in the rainy season,” Mr. Walunj added.
Retailers said that people who usually bought onions in quantities had also cut down on the purchase due to the rise in the prices.
