Onion costs over 100 per kg as the gap between wholesale and retail prices widens

In a grocery store near you, onions, a staple in most homes, have been selling for 100-120 per kg for a few days now. As extensive crop damage from heavy rains in August-September created a gap between supply and demand in the market, pushing onion prices northward, retailers are reportedly raising prices artificially. , thus gaining a windfall.

The wholesale price of onion in the Yeshwantpur APMC market is between 60 and 70, according to Udayashankar, president of the Bangalore Onion and Potato Traders Association.

“In fact, arrivals have improved over the past week and onions from Molakalmuru and Indore are coming to the market. The stocks are better compared to the previous weeks. It also caused some correction in the wholesale price, ”said Ravi Kumar, senior onion merchant at Yeshwantpur yard.

But retail prices remain abnormally high, with no sign of a correction. “Usually, the difference between the wholesale price and the retail price at this cost price is about 10, taking into account the freight and the profit margin. But many retailers seem to be selling them for a staggering 30-40 yen per kg, ”said a purchasing manager at a city grocery chain. The chain of stores he works for sold onions for 85 yen per kg on Monday.

“Retail prices of onions have crossed the 100 yen mark in several metropolitan cities across the country, and it has even turned into an electoral problem in Bihar. It has since dominated media reporting, both in national and regional media. This narrative allowed retailers to artificially raise prices, ”said a senior onion wholesaler, who declined to be named. “In our case, there have been arrivals from Molakalmuru, Chitradurga, but not as many as in previous years, apart from arrivals from Nashik and Indore,” he said.

However, given that the next onion crop is not expected until January, and the current crop yield is already running out relative to demand, the wholesale price is only expected to rise. It could exceed the 100 yen mark in the coming months, Udayashankar said.

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