On Tuesday, wholesale prices of onion fell below the Rs. 50 per kg mark, at the Lasalgaon in Maharashtra, Asia’s biggest onion market, due to curbs on exports and fear of action against hoarding.
Even at Azadpur mandi in Delhi, wholesale onion price declined by Rs. 3-5 per kg to Rs. 53 on increase in arrival of new crop from Karnataka and Andhra Pradesh.
However, retail onion prices across the country continue to rule as high as Rs 80 per kg.
At Lasalgaon, which sets the price trend across the country, the wholesale onion price declined to Rs 48.5 per kg today from Rs 57 per kg last week, according to the data maintained by Nashik-based
National Horticultural Research and Development Foundation (NHRDF).
“Prices declined due to increase in arrival in the mandis,” NHRDF Director R P Gupta said. Arrival of onion increased as farmers/traders brought more stock for sale after the government imposed restriction on overseas sale by raising export price sharply to USD 700 per tonne from USD 425, Nashik-based traders said. Also, fear of action against hoarding along with MMTC importing 10,000 tonnes of onion helped, they added.
On Monday, the Centre had asked the Maharashtra government to crack down on hoarders and take adequate measures. Onion prices both in the retail and wholesale markets have been rising unabated in the wake of shortage of five lakh tonnes of onion in the country.
There is apprehension that this year’s kharif output may get affected because of deficit rains in the growing states. Thanks to increased arrival of new crop from these two states, the wholesale prices in Delhi markets have declined by 3-5 per kg to Rs 53 today, Azadpur Agricultural Produce Marketing Committee (APMC) member Rajendra Sharma said.
