Modal onion prices at Lasalgaon — the country’s largest wholesale market for the bulb, on Monday touched Rs 1,050 per quintal with arrivals of nearly 12,000 quintal.
Onion prices in key mandis of Maharashtra have risen on increased demand from other states and a delay in the sowing for the new kharif season because of deficit in rainfall so far.
Modal onion prices at Lasalgaon — the country’s largest wholesale market for the bulb, on Monday touched Rs 1,050 per quintal with arrivals of nearly 12,000 quintal. Last week on Friday, while arrivals were heavy, crossing 16,000 quintal, modal prices were also slightly on the higher side at Rs 1,200 per quintal. Prices have more or less remained in the range of Rs 1,050 per quintal to Rs 1,200 per quintal.
According to Jaydutta Holkar, chairman, Lasalgaon Agriculture Produce Market Committee (APMC), farmers were earlier bringing in the rejected produce to the mandis, thereby leading to lower prices. However, they have now begun stocking for the season ahead and have started bringing out good quality onions which are commanding better prices, he said.
“Moreover, onion stocks in Rajasthan and Madhya Pradesh, have been badly damaged due to a rise in temperatures during May, leaving little onion inventory in these states. Similarly, production of onion in Tamil Nadu has declined. As a result, there is a growing demand for onion from Nashik district,” he said.
Arrivals have gone up after the Ramzan fasting period causing farmers to rush to markets because of a rise in prices, he said. Onion from the state is currently being sent to Kerala, Tamil Nadu, West Bengal and Odisha.
“The demand for onion has also increased in other countries along with other states. Lasalgaon is currently exporting onions in some small countries including Dubai, Colombo and Bangladesh. However, this export is not the expected objective,” Holkar said.
Holkar said that Maharashtra too has not received enough rainfall for sowing the new onion crop. These factors have led to a hike in prices, he pointed out. Earlier, the average wholesale prices had crashed by almost 65%, from Rs 1,700 per quintal on February 21 to Rs 600 per quintal on May 18. The average wholesale prices were in the range of Rs 600 to Rs 700 by end-May.