Pune: Onion Prices Skyrocket to Rs 80 per kg – Reasons Behind the Hike and When They May Drop
Pune, November 13, 2024: Onion prices are skyrocketing in Pune, with prices reaching Rs 80 per kg in the retail market, causing a huge impact on consumers. Experts believe that the rising prices may remain high for a month due to lack of supply.
Consumers Distressed by High Prices
Consumers are facing a lot of difficulties due to the huge surge in onion prices in Pune. The wholesale price of old onions in Pune’s Shree Chhatrapati Shivaji Market Yard has reached Rs 55 to Rs 65 per kg, while new onions, which are of low quality, are being sold at Rs 30 to Rs 45 per kg. Meanwhile, the price of old onions in the retail market has reached Rs 80 per kg. This price rise has had a huge impact on the household budget, as the availability of onions is decreasing.
Rise in Prices Due to Reduced Supply
The temporary closure of market committees in Nashik during Diwali affected the supply chain. Also, the summer crop onion, which meets the demand in this season, is now almost coming to an end. Only 2 to 3 percent of the stored onions are left, due to which prices are increasing further as the demand increases.
Onion traders say that about 10 to 15 trucks of old onions and 30 to 35 trucks of new onions arrive daily from areas like Shirgonda, Karjat-Jamkhed, Junnar and Manchar in Pune. While the quality of old onions remains and its prices are high, the quality of new onions is low, which is affecting the stability of the market. Traders estimate that the arrival of good quality onions will increase in early December, till then the prices will remain stable.
Garlic Prices Also Increase
Along with onions, the prices of garlic have also increased significantly and it is being sold at Rs 400 per kg in the markets of Pune. Citizens have expressed displeasure over the rising prices and are hoping that the prices will come down in the coming months. Garlic prices are likely to remain high for the next three to four months, further increasing the inflation pressure on essential food items.
Looking Forward
The Lasalgaon market in Nashik, India’s largest wholesale onion market, has also witnessed price hikes, as farmers are fetching over Rs 6,000 per quintal for the summer crop. This trend suggests that prices may remain high until the supply of good quality new onions reaches normal levels in December. By this time, prices of old onions may stabilize or fall with increased supply.
Pune onions are in great demand in South India, especially in Karnataka, Andhra Pradesh, Kerala, and Tamil Nadu. This state-level demand and limited supply are affecting onion prices in the wholesale and retail markets across the region.
