With increased arrival of kharif crop, wholesale onion prices dip by 50%

PUNE: Wholesale onion prices declined by close to 50% from December 1 at the Lasalgaon wholesale market in Maharashtra as arrival of the fresh kharif crop increased by 60%.

The wholesale onion prices declined to Rs 10.60/kg today as compared to Rs 19/kg on December 1 at the Lasalgaon APMC in Nashik district of Maharashtra. As onion prices ruled at record high levels during July to November, farmers had increased the area under the crop substantially, hoping to get good returns. Retail prices had ruled between Rs 60/kg to Rs 90/kg for the longest time ever during this period.

As a result, arrivals have increased too as the harvesting of the kharif crop is now in full swing. From 12,600 quintal on December 1, onion arrivals have increased to 20,000 quintal/day. Arrivals are expected to remain high even in January.

The Union government has slashed the minimum export price (MEP) of onion from $ 700/tonne to $ 400/tonne to boost exports and in turn, relieve the pressure of bumper arrivals on the domestic prices. Nanasaheb Patil, chairman, Lasalgaon APMC, while speaking to ET earlier said, "With drought conditions intensifying in the state for the second consecutive year, there is nothing with the farmers to look forward to. They have to get good price for current kharif crop."

When the prices were ruling at historic high levels, very few farmers had the stocks with them. "Last year, Modi government had stopped prices from moving up. We expected the same thing to repeat this year and sold off the stock early, instead of bearing losses due to deterioration in quality by keeping them for long," said a farmer from Chandvad, who did not wish to be identified.