Once again onion rates have sharply increased in wholesale and retail markets of Karachi. According to wholesalers, persisting shortage supply of onion and increasing in demand supply gap resulting in price increase. There was a sharp rise in the price of onion in Karachi where it was sold at Rs 45 per kg to Rs 50 per kg in different retail market due to, what the traders say, scarcity of commodity.
The onion rate increased during the recent days, as few days back the retailers were selling superior grade onion at Rs 30 per kg to Rs 35 per kg. The wholesales said that onion price jumped by Rs 200 per 40 kg in last few days owing to short supply from upcountry. A bag of 40 kg sold at Rs 1400 in wholesale market. The onion rates depend on Sindh production in coming days; if the production and supply will increase the rates will come down.
However, the wholesalers hoped that prices of onion would reduce soon with the arrival of fresh onion crop from interior of Sindh. Currently, domestic onion stock has exhausted completely and the requirement of the country's population was fulfilled through its import.
It is worth mentioning that about two weeks ago price of onions had spiked to a new peak and ranging between Rs 70 and Rs 80 per kg across the country. Extensive flood damage to onion crop in Sindh was blamed for the shortage that was causing an upward pressure on prices.