Wholesale onion prices witnessed declines

According to the latest news, wholesale onion prices decreased by more than ₹10 per kg in key consuming markets including Mumbai, Delhi and Chennai. After the government imposed stock limits on traders to check hoarding and price increase, the arrival of the perishable commodity rose.

Moreover, onion prices decreased even in producing areas. For example, in Asia’s largest wholesale onion market, in Lasalgaon in Maharashtra, onion prices fell by ₹5 per kg to ₹51 per kg during just one day. This occurred after the government’s order on stock limits.

Besides that, according to the government data, the wholesale onion prices in Chennai witnessed falls, and on October 24 it dropped to ₹66 per kg while on October 23 it stood at ₹76 per kg.

Except for Chennai, During one day, the prices in Mumbai, Bhopal, and Bengaluru decreased by ₹5-6 per kg. Prices in Mumbai fell to ₹70 per kg. Meanwhile in Bengaluru it touched to ₹64 kilograms and in Bhopal to ₹40 per kg.

The prices fell following some recover in the daily arrival of onion in these consuming markets.

Additionally, in the world’s biggest vegetable market, Delhi’s Azandur mandi daily arrival boosted to more than 530 tonnes. Whereas in Mumbai it gained to 1,560 tonnes from 885 tonnes.

Daily arrivals in Chennai increased to 1,400 tonnes while in previous session it stood at 1,120 tonnes. Additionally, in Bengaluru, daily arrival in mandis boosted from 2,500 tonnes to 3,000 tonnes.

However, in cities such as Lockdown, Bhopal, Ahmedabad, Amritsar, Kolkata and Pune, the arrivals are yet to rise.

The government had imposed stock limits of 2t for retailers and 25t for wholesalers

Significantly, on October 23, the government had invoked the Essential Commodities Amendment Act and imposed stock limits of 2 tonnes for retailers and 25 tonnes for wholesalers till December 31 to check to hoard and cool down prices which have reached ₹100 per kg in some retail markets.

Significantly, the government has also taken some measures to increase domestic availability and check price increase. It has outlawed exports and relaxed norms for import of the commodity.

Moreover, the government is releasing onion from its buffer stock in the retail market and key mandis to provide relief to consumers from the price increase.

Another critical thing to mention is that onion values have come under pressure. This was due to heavy rainfall in leading growing states of Maharashtra, Karnataka and Andhra Pradesh. Significantly, heavy rain has destroyed the standing Kharif crop, which is supposed to hit mandis from the following month.

Significantly, the government is expecting approximately 6 lakh tonnes drop in onion production to 37 lakh tonnes this Kharif season.