Onion prices shoot up to 200 per cent as supply dips

PUNE: Onion prices have shot up by up to 200 per cent since the start of this month in some top wholesale markets of Nashik, one of the biggest onion production centres in the country, and by more than 40 per cent in the last two trading sessions, as supplies have plummeted. Average wholesale price of onion at Pimpalgaon APMC ( Agriculture Produce Marketing Committee) market rose to Rs 35.50 per kg on Tuesday, up from Rs 12.51 on July 1, Rs 21 on Friday and Rs 25 per kg on Saturday.

The market was closed on Sunday and Monday on account of weekly-off and Ekadashi, respectively. In the Lasalgaon APMC, prices stood at Rs 36 per kg on Tuesday against Rs 25.50 on Saturday and Rs 15.51 per kg on July 1. Maharashtra accounts for about 30 per cent of India’s onion production. Onion prices have also increased at APMCs in other onion growing states. Traders expect the prices to continue to rise unabated as they do not perceive any strict action from either the central or state government.

"The government has kept a period of 20 days for taking a decision after submission of rates and there are 30 days for delivery of the cargo. This way, onions can land up only by September-end, while imports should happen immediately in August to control the rising trend of prices," said Ajit Shah, president at Onion Exporters Association.