Why Are Lemon Prices In Indian Mandis Soaring?

Rising lemon prices in mandis Rising lemon prices in mandis

The people in India were yet to recover from the shock of rising prices of petrol-diesel, CNG-PNG, LPG cylinders, edible oil, and then there came another breaking news – a sudden jump in lemon prices. Lemon has now gone up to ₹300 per kg, leaving behind even the exotic fruit range. For the first time in the last 44 years, lemons have become so expensive.

Why did lemon prices increase suddenly?

Lemon is mainly grown in five states Gujarat, Maharashtra, Karnataka, Andhra Pradesh, and Madhya Pradesh, Gujarat is the largest producing state. But last year, the storm Taukete that hit Gujarat and Maharashtra caused a lot of damage to the lemon crops. Since then, there hasn’t been much supply of lemons from Gujarat and Maharashtra. Besides, the lemon supply from Andhra Pradesh has also reduced. Therefore, the prices have suddenly shot up. Simultaneously, the rising prices of fuel also have had an effect.

The demand for lemons increased at the beginning of April due to sudden rise in temperatures and festivals (Ramadan and Navratri). However, the supply of lemons has been comparatively less. This gap between demand and supply is one of the primary reasons for the rise in lemon prices. The cost of transportation has also been adversely affected due to the cost of diesel.

What do lemon merchants have to say on this?

Traders are upset as currently, only a few people are buying lemons. The sellers of Azadpur Mandi (Delhi) say that the cost of good quality lemons is now ₹250 per kg. As people are buying less, trade has reduced by more than half.

40-45% of lemon supply comes from Illur and Gudur mandis of Andhra Pradesh. 10% supply comes from Telani and Rajahmundry mandis. Farmers producing more than 20 thousand lemons belong to Illur mandi. Generally, 25 trucks (21 tonnes in one truck) run daily to supply lemons all over the country. But now the count has been reduced to only 5 trucks. That means the supply has been sliced to 1/5th.

Traders of Jamalpur Darwaza Bandh Market in Gujarat say that lemons also come from Maharashtra, Chennai, and Karnataka. During the summer season, 150 tonnes of lemons are consumed daily in Ahmedabad itself, whereas presently, the supply is only around 70 tonnes per day. A trader of the Kalupur vegetable market said that this time the lemon supply from South India has also been less.

Lemon sellers in Jaipur’s Muhana Mandi say that besides rising temperatures, the consumption of lemons has also increased due to Ramadan and weddings. But lemon is not being supplied according to the rising demand. Farmers are thus taking advantage of the situation and charging arbitrary prices for lemons.

Another seller says it’s difficult to sell or buy 100 lemons for ₹500 to ₹1,000. Lemon was ₹240 per kg in Indian mandis on April 1, 2022. But now the prices have gone up to ₹300 per kg.

What will be the scenario in the coming days?

According to experts, the prices of lemons will not remain sky-high for long but it will take another one and a half to two months for the prices to normalize. The fall in prices will happen only when the new lemon crop arrives. The new trees that might have been planted in Gujarat and Maharashtra will also take time to grow. Therefore, there will be a shortage of lemon supply from these states.

Although it might take months for the prices to come down, you can still keep track of the latest changes in lemon rates from 2,000+ Top Indian Mandis with Bijak agri trading app. Here, you will not only be able to check & compare prices of 200+ commodities but also avail end-end agri trading services for your business. Presently, the app is being used by over 30,000 agri traders to connect and trade with reliable Buyers and Suppliers across India.

*Disclaimer: The information published in this blog is for general information purposes only. This blog has been prepared after much research, yet we recommend that you do not use it as a basis for any legal or business decision.