Onion prices at the Chakan market in Pune district have risen to ₹44 per kilogram during the Diwali period, increasing costs for household consumers while improving returns for farmers and traders. The rise has been attributed to lower arrivals and reduced cultivation of the new onion crop.
The Khed Agricultural Produce Market Committee’s Chakan market received 900 quintals of old onions on Saturday, according to a report by Sakal. Depending on quality, the onions received a minimum price of ₹37 per kilogram and a maximum market rate of ₹44 per kilogram.
The higher rate comes at a time when demand for onions typically increases during Diwali. Consumers purchase vegetables and grocery items for festive meals as well as regular cooking, with onions used in preparations including poha, vegetable dishes and other food items. The increase is therefore adding pressure to household budgets during a period of higher seasonal spending.
Chakan is an important wholesale point for onion movement into Pune, Pimpri-Chinchwad, Navi Mumbai, the Konkan region and other markets. Wholesale and retail sellers from these areas visit the market to purchase onions. Traders from Uttar Pradesh, Delhi, Karnataka and Chennai also reportedly buy onions at Chakan for wholesale distribution.
The market’s location within a wider supply chain means that changes in arrivals can affect both local consumers and buyers in other cities. The report said onions from Chakan are also being purchased by exporters and traders because they are considered suitable for export and have longer storage durability. Onion consignments from Chakan are transported towards Delhi and Uttar Pradesh, adding to the market’s regional role.
Ashok Rakshe, chairman of the Khed Agricultural Produce Market Committee, and secretary Balasaheb Dhandre said the fall in arrivals to around 900 quintals had contributed to the price increase. They also attributed lower cultivation of the new onion crop to drought conditions this year and said production could be lower, creating the possibility of further price increases.
For farmers, the higher prices have brought improved market realisation after a period in which lower rates can reduce the viability of cultivation. Traders have also expressed satisfaction with the market conditions, while consumers are waiting for arrivals to rise and prices to ease. The competing effects show how a change at the wholesale market level can benefit producers and traders while increasing daily food costs for urban and peri-urban households.
The next movement in prices will depend on onion arrivals at Chakan and the availability of the new crop. The market committee’s assessment is that increased supply could bring prices down, while reduced production may place additional upward pressure on rates.
