Data from the Nashik-based National Horticultural Research and Development Foundation showed that onion was trading at at Rs 24 a kg on Tuesday in the benchmark Lasalgaon mandi in Nashik district of Maharashtra. That's a fall of four per cent since Monday and 40 per cent from Rs 40 a kg on January 20, a level not seen since November 6, 2019. It continues to sell at Rs 40-44 a kg in retail markets across the country.
Farmers in Nashik district, Maharashtra - a major producer of onion - have started harvesting the premature crop to cash in on the high prices in mandis. Good-quality onion was quoted at Rs 93.50 a kg on the higher side. However, the poorest-quality onion was selling at Rs 25.50 a kg on Wednesday as against Rs 20 a kg on Tuesday. Thus, the model price of onion works out to Rs 70-75 a kg in Lasalgaon, translating into Rs 100-125 a kg in the retail markets of the country.
Onion is currently trading between Rs 70 and Rs 80 in retail markets across the country.
At Lasalgaon mandi, Asia's largest onion selling market, the onion price jumped Rs 1.50 a kg to Rs 32 a kg, the highest since January last year.
Onion prices both in wholesale and retail markets in most parts of the country have seen a sharp increase since July.
Experts believe the rising prices may encourage farmers to bring in additional areas for under onion cultivation during the rabi season, which may boost the precious bulb's output, reports Dilip Kumar Jha.
The crop is currently trading at Rs 22 a kg compared to Rs 12.50 one month ago.
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India eats 1.2 million tonnes of onions a month and the current stock will last till the end of August.
Traders say prices will remain elevated due to increased demand, lower availability
India exports about 1.5 mt of onion every year.
Lasalgaon, Pimpalgaon mandis halt auctions to arrest the decline.
The fear of price rise gained momentum after reports surfaced that the NAFED procured 50,000 tonnes of onion this season.
The model or average price for a kg of onion was Rs 6 on Monday -- the lowest in this late kharif and rabi harvesting season, so far. While poorer quality kharif onions traded at Rs 3 a kg, the price of export quality was Rs 9 a kg.
Onion prices had peaked to Rs 57 per kg on August 22.
Assembly elections in Maharashtra are scheduled later this month. The farmer protests are likely to affect the results, especially in the onion-growing belt of Nashik.
Exports during the same period in 2012-13 fiscal stood at Rs 1,590.79 crore (Rs 15.9 billion), according to National Horticultural Research Development Foundation data.
Prices of the kitchen staple in Azadpur mandi, Asia's largest wholesale market, were ruling at Rs 60 per kg today as supplies were below normal.
In the coming weeks prices are expected to further cool down as new crop from Karnataka has started coming into the market.
The agriculture ministry projects India's tomato output at 19.69 million tonnes in 2016-17 (July-June)
However, onion arrivals have been normal with farmers bringing in 1,400 tonnes of the bulb to Lasalgaon on Friday, substantially lower than 2,429 tonnes on Thursday, but there is no dearth of supply to mandis.
However, truckers have spared other vegetables, fruits, fuel and milk from the strike.
Onion has become costlier by over 33 per cent in the last one week and over 70 per cent in September so far, reports Dilip Kumar Jha.
Private traders had placed orders early this month with Egyptian suppliers at $320 a tonne
Prices of the key vegetable have also gone up in various cities.
Increased harvesting is expected to boost supply
Not only primary vegetables, but also additives like garlic, ginger and chilly have recorded a sharp increase in prices
'Onion supply to mandis has declined due to its lower availability.'
'Let the high price of onions clear the market, matching supply with demand.' 'Let onion growers keep exporting -- we are the world's largest onion exporter, export 10% of our production,' advises Naushad Forbes.
In Delhi, the wholesale price is now Rs 48-52 a kg; the retail one is Rs 80 a kg.
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