Onion prices in Mumbai have climbed sharply over the past month, with retail rates now reaching ₹60–70 per kg, nearly twice the levels seen previously. The price surge is being driven by lower arrivals at major wholesale markets, damage to stored stocks due to rainfall and rising demand from other parts of the country.
At the Vashi Agricultural Produce Market Committee (APMC), wholesale onion prices for good-quality produce have risen to around ₹45–53 per kg, compared with ₹15–25 per kg a month earlier. The increase has pushed retail prices significantly higher, putting additional pressure on household budgets.
Traders say the supply situation at Vashi has tightened considerably. Daily onion arrivals have dropped to around 60–70 trucks, compared with nearly 100 trucks during normal periods.
The decline is largely linked to reduced supplies from key onion-growing regions, including Nashik, Ahilyanagar, Pune and Solapur.
Vashi wholesaler Ashok Karpe said prices could remain elevated until the arrival of the next major crop. According to traders, fresh supplies are expected to improve only after roughly two to two-and-a-half months.
Demand from markets in Delhi and southern states is also adding to the pressure. Traders in Vashi believe wholesale prices could move towards ₹60 per kg within the next fortnight if demand remains strong and arrivals do not improve.
The situation is even tighter at Lasalgaon, one of India's biggest onion trading centres. Market arrivals have fallen to approximately 9,000 quintals, about 50% below normal levels, according to market sources.
Premium-quality onions are selling for around ₹55 per kg, a level traders describe as the highest wholesale price seen in about two years. These higher-grade onions are particularly sought after by large hotel chains and farmers purchasing onions for seed purposes.
Lasalgaon APMC chairperson D K Jagtap said prices could rise further over the coming month. Increased supplies from states such as Madhya Pradesh and Karnataka are expected to provide some relief once arrivals from these regions gather pace.
Weather conditions have added to the supply problem. Rainfall during the harvesting and storage period has damaged a significant quantity of onions, while damp and spoiled produce has reduced the availability of good-quality stocks in wholesale markets.
Traders say the shortage of quality onions has become an important factor behind the recent price increase. With fewer marketable onions available, buyers are competing for the remaining stocks, keeping wholesale rates firm.
There are also concerns about the upcoming late Kharif onion crop. Traders in Nashik expect the harvest, normally seen during January and February, could be affected if sowing is delayed.
Bharat Dighole, founder-president of the state onion growers' association, said the production outlook would become clearer in October, once sowing activity is completed.
The timing and size of the next crop will be crucial in determining when prices begin to ease.
Traders expect onion prices to remain under pressure in the near term. A sustained improvement in arrivals from Maharashtra and neighbouring states will be necessary before wholesale and retail rates begin to decline.
For consumers, however, relief may take some time. Retail onion prices are currently hovering around ₹60–70 per kg, compared with ₹30–45 per kg during the corresponding period last month.
With demand potentially increasing around the Ganeshotsav festival and supplies remaining limited, consumers may continue to face elevated onion prices in the coming weeks.
The market could gradually stabilise once fresh crop arrivals increase and supplies from Madhya Pradesh and Karnataka strengthen. Until then, traders and consumers will be closely watching daily arrivals at Vashi and Lasalgaon for signs of a sustained recovery in supply.
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