The arrival of new red onions at Pune's Market Yard has initiated a downward trend in onion prices, which were previously escalating due to a supply crunch. This influx of the new season's harvest is offering some relief in prices, especially for the old stock, by enhancing the availability in both wholesale and retail sectors.
Onion prices had been increasing for weeks because of crop damage in southern Indian states, which spiked the demand for onions from Maharashtra and Madhya Pradesh. The recent developments have started to stabilize the rising prices in the wholesale market.
The market has seen a decrease of Rs 6 in the wholesale price of old onions, with prices dropping from Rs 44-48 per kilogram to Rs 35-42 per kilogram. The new crop has set the wholesale prices for fresh onions to range between Rs 20 to Rs 35 per kilogram, based on quality.
Such adjustments have also influenced retail prices, with onions that were sold for Rs 70 to Rs 80 per kilogram now being available for Rs 50 to Rs 60 per kilogram.
Market Yard received an increase in onion deliveries, from 70 trucks last Sunday to 100 trucks, including 10 trucks of new onions. Fresh onions have been arriving from Karnataka's Hubli and Purandar taluka in Maharashtra. The anticipated favorable weather conditions are expected to introduce more high-quality onions into the market soon.
Traders, encouraged by the increased supply, have started releasing stored old onions into the market, contributing to the price reduction. Balasaheb Rakshe, a notable onion trader at Market Yard, remarked, "The arrival of new onions has begun, and this will increase in the coming days, likely leading to further reductions in prices."
Source: The Bridge Chronicle