In a price rise deja vu, you may have to pay over Rs 30/kg by August end, thanks to an erratic monsoon; no reprieve in sight until the next yield at year end
In a price rise deja vu, you may have to pay over Rs 30/kg by August end, thanks to an erratic monsoon; no reprieve in sight until the next yield at year end
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The phenomenon of pricey onions seems to be recurring with the regularity of an annual ritual, as your household's humble essential is set to stride the price rise wave yet again.
A customer reacts on learning that the wholesale
price of onions has gone up again. Pic/Datta Kumbhar
The preparation for a repeat performance of last year's surge, when the prices peaked to Rs 100 a kg in December, appears to be underway, as over the last two days, rates in the wholesale market went up from Rs 100 per 10 kilogram to Rs 130-140.
According to sources in the Agriculture Produce Market Committee (APMC) at Vashi, they will touch the Rs-200 mark by the end of the month, sending the ripples in the retail market.
In other words, by August end, you may well have to shell out over Rs 30 to buy a kg of onions from the local vendor.
According to agriculture experts, the monsoon has been irregular in areas where onion is grown, likely to set off the upward price movement in the near future.
Furthermore, experts warn, any chances of a downward climb will only be clearer by November, with the arrival of the new stock from the fields.
Market trend
Ashok Walunj, director of onion and potatoes section, APMC, said, "The supply of onions has reduced as the May yield nears its exhaustion.
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The market that shut at Rs 100 per 10 kg on Saturday opened to Rs 140 for the same amount on Tuesday. Since then, prices have been on the rise."
He added, "Looking at the market trends, in the next 15 days, the prices would go up to Rs 170-200 per 10 kg."
The wholesale price of onions is set to touch Rs 200 per
10 kg by the end of the month, say APMC experts
Walunj doesn't have an answer as to when the prices would recoil. However, he claims that the momentum would continue until November, when the next yield of crop would be out in the market for sale.
As of now, where you paid Rs 15-16 per kg of onions, you will have to shell out Rs 17-18, until the month's end.
Said Narayan Kurhe, one of the biggest onion retailers in Lalbaug, to MiD DAY yesterday, "The prices are going up, but I have hiked them by Rs 2 per kg for now.
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The onion that I was selling for Rs 16 a kilo on Tuesday went for Rs 18 today. The prices will go northward in the coming days," he said.
Sanjay Kalyankar, who was buying onions last afternoon, was surprised that he had to pay extra, again. "Onion is, again, going to make me cry. I hope the rates don't go too high, like they did last year," he said.
Eating out
Restaurant owners claimed that while the price rise would have an impact on their menu rates immediately, they would initiate cost cutting measures if the surge keeps up.
Mohammed Zahir of Indian Hotel at Tahera Street in south Mumbai, said, "If the prices continue to rise, I will have to reduce the quantity of onions I use.
However, Mumbaikars have a taste for onion and one can't deny them, but thoda sa kanjoosi toh karni padegi. From 40 kg I might reduce it to 30 kg a day."
Another stall owner from Mohammed Ali Road said, "I would wait for a day or two before taking any step. Until then, my menu card and rates would remain the same."
Experts say
According to agriculture expert, Manujshree Tadvalkar, the prices are likely to clamber further up.
"The Kharif crop hasn't lasted long as the monsoon was erratic, especially in Marathwada and Lasalgaon near Nasik, which is the hub of onion production," Tadvalkar said, adding, "Agriculture works in cycles, which, once affected, is disrupted for at least two-three seasons. So the onion market would also get affected."
State Agriculture Commissioner Prabhakar Deshmukh agreed, but he is more positive in outlook.
"Even with the erratic monsoon, farmers have managed to sow seeds properly. We are expecting a good yield. The price mostly depends on the demand-supply chain," said Deshmukh.
December 2010: Rs 100 per kg (retail)
August 2011: Rs 200 per 10 kg
Expected wholesale price by August end
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