The retail price of one of the most important kitchen ingredients, onion has now crossed Rs 30 per kg in Mumbai. Onion price has doubled in the last fortnight - premium quality onion is now being sold at a whopping Rs 40 per kg. Short supply of the onion in the wholesale market is the main reason behind the price hike and according to traders the price will further go up in the coming days.

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According to a report by DNA, the administration in Agriculture Produce Market Committee (APMC) in Vashi informed that arrival of the commodity has dropped by around 30% in the last one week. “The supply of onion is fluctuating, and that is affecting its daily price,” an official from the APMC told DNA. He added that supply has dropped to just 6,000 quintals last week.
 
“There was a poor cultivation of onion in growing states like Maharashtra, Karnakata and Uttar Pradesh,” Viren Shah, a trader at APMC said. Apart from these three states, Gujarat, Odisha, Andhra Pradesh, Tamil Nadu, Bihar, Punjab, and Rajasthan are the major onion-producing states.

Adequate supply of onion had brought down the price of the same for some time and it was even sold at Rs 10 per kg till September end. APMC has been receiving around 60 to 70 trucks laden with onions, for the last one week.

“Around 1,200 tonnes of onions are required to meet the daily need. However, in the last fortnight, the supply has been only around 600 to 900 tonnes,” said an official from APMC market, requesting anonymity, as cited by DNA.

“Onion is a three-month crop. If it was planted in June, then by August-end or by September we get abundant supply. However, due to scanty rain many areas of the state, a farmer could not plant,” said another trader to DNA.