Guwahati: Onion prices have increased following a decrease in supply. The price of the vital good has increased by about 60% to 80% during the past week.
Traders at the Agriculture Produce Market Committee (APMC) in Vashi are quoted as saying that the increase in onion prices will control this price until the fresh crops hit the markets during the first week of November.
Onion prices have surpassed Rs 40 per kg in the retail sector and dealers predict they will rise to Rs 50 per kg. Onion was priced between Rs 15 and Rs 25 per kg in the retail market at the beginning of the month.
The price increase for onions, one of the key elements in cooking, may somewhat deflate spirits in the weeks leading up to the festival.
According to the APMC administration, the old stocks of onion are getting over and the present supply is from old stocks, not from farmers. “Since onions are arriving from the stocks (godown), the buying price is around 30 to 40 per cent higher than a fortnight ago. The buying price of onion is between Rs 15 per Rs 30 per kg,” said Munaf Patel, a trader. He added that the price will come down after new crops start arriving.
However, the price will stabilize only after the Rabi crops start arriving by January-February next year. “The Rabi onion contributes to 70 per cent of the total onion production. At the same time, the Kharif onion contributes very little but plays an important role in maintaining supply during the lean period of September-November,” said Patel.
On average, APMC Vashi receives 140 to 160 trucks and tempos every day carrying onions. However, the supply has decreased over the past several days, and currently there are between 100 and 110 trucks arriving at the market each day.