Mumbai: Onion prices soar amid supply crunch

The onion supplies to the wholesale agriculture produce market committee (APMC) market in Vashi have reduced by over 40%, leading to rise in prices at both wholesale and retail markets.

In the wholesale market, Gujarat onion is being sold at Rs 18-30 per kg and Maharashtra onion at Rs 38-45 per kg. Mumbai, Navi Mumbai area has an average demand of 1000 tons of onion per day at present; But the revenue has been declining for the past few days. On Thursday, 787 tonnes of onions arrived in the market, of which 40 per cent came from Gujarat. Traders said that possibility that the shortage will continue for the next one month. Onion is being sold at Rs 50 per kg in the retail market. Onion prices have also started rising in other market committees in the state.

Price has increased as supply from farms is affected due to rain, untimely production.

Wholesale prices that had been hovering around ₹20- ₹25 per kg at APMC market last week shot up to ₹40-42 per kg on Tuesday. The retail prices have soared from ₹30-35 per kg to ₹50-55 per kg.