Nashik, Feb 14: After a situation of acute scarcity, an onion glut is in the offing at the Lasalgaon wholesale onionyard following fresh arrivals of the late Kharif (Raangada variety) crop and a ban on exports.The fresh crop arrivals, which was around 24,000 quintals in the last week of January, has shot up to 43,000 quintals in the second week of this month. Correspondingly, the prices have dipped from an average of Rs 1,041 per quintal to Rs 700 per quintal. The best quality onions, which had fetched a record high price of Rs 1,751 per quintal on December 30, 1997, and later Rs 1,851 per quintal on February 3, are fetching not more than Rs 1,351 per quintal.
The secretary of the Lasalgaon Agricultural Produce Marketing Committee (APMC), BY Holkar, told The Indian Express today that the onion market was heading for a glut.
He pointed out that the arrivals had increased substantially, pushing down prices, which would continue to plummet.
He said that another important factor which would expedite theglut was the ban on onion exports.
He said that if the ban continued and the marketyard continued to be flooded with onions, prices would fall below Rs 500 per quintal within a fortnight, resulting in a glut.
Holkar said that the ban had been imposed in the second week of January, serving no purpose as exports were negligible during the period owing to non-availability of good quality onions. The Kharif crop had failed due to adverse climate, reducing production by 60 per cent. Holkar said that if the ban was lifted, farmers could make up their losses suffered in the earlier crop. However, he pointed out that the ensuing Lok Sabha polls and the election code of conduct might delay the lifting of the ban, resulting in a glut. It may be recalled that in June last year, there had been a glut of onions, which were sold for Rs 100 to Rs 150 per quintal, prompting farmers to agitate and even hit two Maharashtra ministers (Babanrao Gholap and Tukaram Dighole, both from Nashik district) with onions.
The issuehad also figured in the state assembly in July, when opposition members had pelted onions at the treasury benches demanding a remunerative price of Rs 300 per quintal through government intervention.
Subsequently, adverse climate reduced production, pushing up prices. Good quality onions fetched unprecedented prices at Lasalgaon, which handles 20 to 40 lakh quintals of onions per annum. The central government had imposed a ban on onion exports on January 12.
By Holkar further said that due to adverse climate, nurseries had dried up, which would cause a shortage of onion seeds for the next cultivation season, Rabi.
He pointed out that if the government failed to supply adequate quantity of seeds to the farmers in time, the production of onions in the next season would be hit.
Maharashtra tops in onion production in the country, growing 12.45 lakh tonnes over 68,000 hectares in three harvests in a year. This year the Kharif crop failed causing the scarcity. Nashik district is a major onion-growing area,producing about seven lakh tonnes of the crop annually.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
