Onion hits Rs 80 a kg in Nagpur retail ahead of Diwali; garlic up to Rs 400, no relief for 1.5 months

Onion prices have risen in Nagpur district in the run-up to the festival season. Onions now sell at Rs 80 a kg in the retail market. Onion sellers say there is no hope of relief from high prices for the next one and a half months.

Prices are climbing steadily in both wholesale and retail markets, adding to the hardship of ordinary people. Even before Diwali, onions are making the common citizen cry. According to retail traders, prices have shot up sharply over the past few days.

The wholesale price of onion at the mandi or on the spot has reached about Rs 55 to Rs 65 a kg. A further 57% in transport or commission charges is added on top, pushing up costs. As a result, retailers have to buy onions at Rs 65 to Rs 70 a kg in the wholesale market, and retail prices have reached Rs 80 a kg.

Onion sellers said brokers have made it clear that the situation will remain the same for at least a month and a half and prices will not come down. Traders believe that with Diwali approaching, there is no prospect at present of prices easing because of the gap between demand and supply. According to experts, stocks of old onions are low and the new crop will take time to arrive, which is why prices remain high.

Onion seller Mohammad Abrar said prices have risen sharply over the past one to two days. According to him, onions cost Rs 70 a kg in the market including transport, so good-quality onions have to be sold at Rs 80 a kg in retail. He also said there is no hope of prices falling further ahead.

Ram Mahajan, secretary of the Mahatma Phule Vegetable and Fruit Commission Agents' Association, said prices continue to rise. In the wholesale market, sellers are getting onions at Rs 65 to Rs 70 a kg. He does not see prices falling during the festival season.

Garlic prices are just as steep. In the market, garlic is trading at Rs 250 to Rs 300 a kg at the wholesale rate, while in the retail market it is selling at a high Rs 320 to Rs 400 a kg. Traders expect demand for garlic to rise further as the cold increases, keeping prices high.

As for ginger, old stock has almost run out and there is little demand or value left for old ginger in the market. Only new ginger is being sold now, at around Rs 80 to Rs 100 a kg.