Onion prices fall by 50% in a week

Navi Mumbai: The price of onions, which was burning a hole in the pockets of consumers, has dropped drastically by around 50% over the past week owing to arrival of the new crop and duty levied on exports. Prices will fall further as more fresh stock reaches the market, said vegetable traders.

Wholesale prices at the Vashi APMC (Agricultural Produce Market Committee) market, which caters to the Mumbai metropolitan area, have dropped from ₹45-50 per kg last week to ₹20-25 per kg on Friday. Prices in the retail market have dropped from ₹80-90 per kg to ₹60-70 per kg, said traders.

“The new crop this winter is very good. It is reaching the market in large quantities, primarily from Ahmednagar, Nasik, Sangamner and Pune,” said Ashok Karpe, an onion wholesale trader at the APMC market.

Supply has also increased since the government is still levying an export duty, he said. “The duty has reduced from 40% to 20%, but it still is not feasible to export onions as the price is high. Besides, Sri Lanka has waived tax on onions, making our onions costlier in the international market,” said the trader.

While onion prices were still high, the National Agricultural Cooperative Marketing Federation of India Ltd brought in large quantities from Gujarat and sold them for just ₹12-15 per kg. This has also played a role in pulling down the price.

“Onion prices will fall further to around ₹15-18 per kg in the coming days as more stock arrives. If the export duty is completely waived, prices will stabilise at around ₹20 per kg,” said Karpe.

Onion prices have dropped sharply in the retail market as well, though not as much as wholesale rates. Rajesh Yadav, a vegetable retailer in Vashi, said, “We are selling onions at ₹60-70 per kg now against ₹90 per kg a few days ago as there is good supply of fresh stock now. The quality of the new onions is very good, hence retail prices have not fallen much.”