The price of one kg of onion touched ₹100 in the wholesale market for the first time on Monday. The price has skyrocketed owing to low supply following damage to crops during the unseasonal rain that hit farmlands across the State this year.
Ashok Walunj, former director of APMC market, said, “This is the first time that the price of onion has reached ₹100 in the wholesale market. In the retail market, it had already touched ₹100 and now it will be priced between ₹120 and ₹150.”
Meanwhile, traders said the onions produced this season were mostly spoilt in the unseasonal rain and the stock from the summer crop, which were stored in kanda chawls are being supplied in the APMC market.
Mr. Walunj said, “There are certain problems that arise owing to conventional storage of onions such as drop in weight, and sprouting and rotting of the bulb. To overcome such losses, onions are stored in a scientific manner at a place called the kanda chawl, which are constructed in farms. This minimises the threat of losses and deterioration in quality of the crop. It also helps farmers fetch better prices for their produce. They then release the stock as per the season and demand of onions in the market.”
Mr. Walunj said since the old crop is of good quality, it is being sold at a higher price. He said, “Even though it will burn a hole in the common man’s pocket, it is a good phase for farmers.”
Mr. Walunj said onions are usually dried for a week after being harvested. However, farmers are now sending their stock immediately owing to the low supply in the market and the onions turn out to be wet and spoilt.
As of Saturday, the old stock was being sold between ₹70 and ₹80 per kg at the wholesale market, but it has now spiked to ₹100.
The new stock was being sold between ₹50 and ₹60 per kg, and it is now fetching prices between ₹70 and ₹80. The onion supply to APMC market primarily comes from Nashik, Pune, Ahmednagar and Solapur.
Mr. Walunj said, “We get imported onions from Egypt, but they are not of good quality. They are too huge to be used in households. One onion weighs around 250 gm. Of the 100 trucks bringing onions to the market daily, hardly four contain imported ones.”
He said usually the good stock of onions floods the market and is sold at ₹25 per kg. He said the price of onions is not expected to reduce till December 15.
