Despite a drastic dip in the prices of onion by around Rs 15 per kg at Vashi’s wholesale APMC Market in the past few days, the retailers are not ready to budge. Last week, its prices had increased to Rs 48 per kg, which is a seasonal high.
On 30th November 2017 (Thursday), the wholesale price of onions were Rs 30-35 per kg, as compared to last week’s Rs 45-48 per kg. But, retailers are holding back in passing the advantage to consumer, as they are still selling it at a retail price of Rs 55-65 per kg.
To this, retailers are claiming that they have old stock, which they had purchased by paying the prevailing high price of last week. In addition, this price crash is the result of the arrival of more supplies from Pune and Nashik. On Thursday, around 125 trucks arrived, while the number for the previous week was only 80-90.
“Since Wednesday, supply has improved considerably after a shortfall. This sharply reflected in the price behaviour. When the wholesale price reached an astronomical Rs48/kg last week, the downward trend has come as a big relief. Since the market will remain shut on Saturday and Sunday, the price may go down when it reopens on Monday as more arrivals are expected,” said Ashok Walunj, the former APMC director and an onion-potato trader.
On Thursday, the market was dominated by 70% of the fresh crop of red onion, which arrived in at least 85 trucks out of the total of 125. Now, old onion prices are equivalent to red onions, since the good quality onions are being sold in the market. Since wholesale prices do not depict the actual status quo of the retail market, it has been witnessed that retailers are selling at almost double its price.
“We are now selling the old stock which was purchased at a high cost early this week. Once that stock gets over, we will effect a change in price.” Rajesh Singh, a Vashi resident, said, “Retailers are looting consumers under the pretext of old stocks. Taking advantage of the sudden dip in prices, they exploit market behaviour through huge profiteering,” said Dilp Yadav, a retailer.
Last week | Rs45-48/kg
Now | Rs30-35/kg
Supplies | 80-90 truckloads
Last week | Rs60-65/kg
Now | Rs55-65/kg