Onion prices in the retail market are increasing despite a fall in the wholesale prices.
Onion prices in the retail market are increasing despite a fall in the wholesale prices. The wholesale prices have fallen by nearly Rs 3 in the past couple of days but in the retail market, the prices have increased to Rs 35-40 per kg.
Bhavnagar APMC sources said that the prices may increase further in the first week of August when the market sees a drop in onion production. A member of Bhavnagar APMC said that currently the market is flooded with poor quality onion, mostly from Rajasthan and Madhya Pradesh.
"The farmers have not been taking any risk with their produce as they know that the moisture content is high and they cannot store it for long. Once this fear is over, they would start storing onion and that would result in prices going up in August-October period," said the member.
Delay in rains in the state has also raised the fear that the already skyrocketing vegetable prices would further increase in September and October. "Low sowing will lead to paucity of onion in November and that would push the prices up. Usually, the prices of onion begin to decrease from the first week of October, but this year due to delay in sowing, this could happen only in November," the member added.
The prices of vegetables are already higher by about 15-20 per cent as compared to the last year. The officials said that the prices of vegetable are much less in the wholesale markets, but some retailers are selling vegetables at four times the wholesale price.
The officials said that the retailers have been charging exorbitant prices in the name of delayed monsoon. "Potato is being sold at Rs 2.5 to Rs 11 per kg in the wholesale market but the retailers are charging even Rs 28 for a kg," said a member.
Richa Shah, a resident of Gurukul, said that in the past few days, the prices of vegetable have increased drastically, badly affecting her monthly budget. "I have no option but to cut on consumption. I have reduced onion consumption by 50%," she said.
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