Homemakers are finding it increasingly difficult to manage their kitchen budgets as onion prices, one of the essential staples, have surged. In Mumbai, retail onion prices have crossed Rs 60 per kilogram, and in some areas, they’ve even touched Rs 80 per kilogram due to a dip in supply. According to traders, prices are expected to stabilize by the first week of November when the fresh supply from Karnataka arrives.
Residents in Dadar have expressed frustration that onion prices have skyrocketed just as the festive season begins. Even Vashi residents, despite living near the wholesale market, are facing the same high prices, paying between Rs 60 and Rs 80 per kilogram.
Over the past month, onion prices have seen an almost 100% increase. Traders at the Agriculture Produce Market Committee (APMC) in Vashi predict that the price surge will continue until fresh crops arrive in early to mid-November.
In retail markets, the price of onions has already surpassed Rs 50 per kilogram and could go as high as Rs 80. Just a month ago, onions were available for Rs 30 to Rs 40 per kilogram.
The soaring prices are expected to impact the festival season, as onions play a critical role in Indian cuisine. The APMC administration has indicated that current stocks are running low, with most supplies now coming from stored stocks rather than fresh harvests. A trader revealed that, because onions are being sourced from warehouses, purchase prices have increased by 30-40% in the last two weeks. Currently, wholesale onion prices range from Rs 35 to Rs 45 per kilogram, but they are expected to drop once new crops arrive in November.
Sanjay Pingle, president of the Onion-Potato market at APMC Vashi, explained that several factors are contributing to the price hike. He noted that onion prices are high globally. “The 40% duty on exports has kept prices somewhat under control. Without that duty, retail prices could have crossed Rs 80 to Rs 90 per kilogram,” said Pingle. He also mentioned that the Mumbai Metropolitan Region (MMR) consumes around 1,500 tonnes of onions daily.
On Friday, the central government removed the minimum export price on onions, allowing farmers to set their own prices for exports. However, the 40% duty on exports remains in place. Both traders and farmers have welcomed this move, but it may further increase prices in the local market.
Pingle suggested that the government should release onions from its own reserves to help stabilize prices. He added that the quality of onions arriving at APMC Vashi is poor and cannot be stored for long due to excessive rainfall, which has caused significant spoilage in farmers' stocks. Looking ahead, a more stable price environment is anticipated with the arrival of Rabi crops in January or February next year. Rabi onions account for 70% of the total onion production, while Kharif onions, which are harvested between September and November, play a crucial role during this lean period.
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Typically, APMC Vashi receives around 140 to 160 trucks of onions daily, but recent days have seen a decrease, with only 100 to 110 trucks arriving at the market.