After burning a hole in people’s pockets for over three months, prices of onions have finally begun to show a downward trend. Thanks to fresh supplies along with a fall in demand owing to Navratris, prices of the edible bulb have come down from the Rs 70-80 mark to settle between Rs 40-Rs 55 per kilo.
On Wednesday, wholesale rates of the edible bulb came down to Rs. 15-35 from the season’s all-time high of Rs. 65. Based on these rates, price of onions in the retail market has also fallen to about Rs. 55 for the best quality of onions. However, it is pertinent to note that the trickle-down effect, as is generally expected, hasn’t yet happened when it comes to retail market. Several retailers are still taking advantage by stating “artificial shortage” and are fleecing customers by charging as much as Rs. 60 for a kg of onions.
According to traders in Azadpur Mandi, the reason for the fall in onion prices is two-faceted. “Prices have fallen because there is lesser demand as most people fast during Navratri and abstain from consuming onions. Besides, now there is adequate supply owing to fresh harvest and imports from Egypt and Afghanistan. The prices shall a bit more in the coming days,” said Rajender Sharma, member of Azadpur Agricultural Produce Market Committee (APMC).
Mr Sharma added the demand has fallen by almost 25-30 per cent these days and that overall prices of onions have fallen by almost 50 per cent from its peak. Explaining the difference in demand during the festive season, another trader said, “Usually 1000-1200 tonnes of onions come to Azadpur Mandi on a daily basis. But, now since the demand is low, we ask for about 600-800 tonnes per day.”
At present, the Capital is receiving maximum onions from the Southern state of Karnataka. Lesser quantities are also arriving from Maharasthra and Rajasthan. Following curbs on exports and fear of action against hoarding, just a day before, on Tuesday, wholesale prices of onion fell below Rs 30 per kg at Lasalgaon in Maharashtra. Lasalgaon houses Asia's biggest onion market.
On Wednesday, wholesale rates of the edible bulb came down to Rs. 15-35 from the season’s all-time high of Rs. 65. Based on these rates, price of onions in the retail market has also fallen to about Rs. 55 for the best quality of onions.
