Get ready to pay higher prices for Onions. Here's why

More than 500 traders, responsible for procuring onions from all 15 Agricultural Produce Market Committees (APMCs) in Nashik district, have initiated an indefinite strike starting Wednesday. As per a TOI report, this decision will significantly affect onion supply in various parts of the country. The Agriculture Produce Market Committee (APMC) of Lasalgaon in Nashik is Asia's largest onion market.

The strike comes as a response to the grievances raised by onion traders regarding the pricing strategies of two central government agencies, the National Agricultural Cooperative Marketing Federation of India (Nafed) and the National Cooperative Consumers' Federation of India (NCCF). These agencies have been procuring onions from farmers in Nashik and distributing them to APMCs in different regions at substantially lower rates compared to what traders offer to their bulk purchasers. The price disparity, according to some traders, ranges from Rs 500-700 per quintal.

Currently, both central agencies are selling onions at an average price of around Rs 1,500 per quintal in wholesale markets across the country. In contrast, at the Lasalgaon APMC, India's largest wholesale onion market, the average price stands at approximately Rs 2,000 per quintal, Kshitij Jain, an onion trader told TOI.


Jain asked: "With transportation costs of Rs 300 per quintal and labor charges of Rs 150 per quintal, our total cost for onions amounts to around Rs 2,500 per quintal. In light of this, how can we compete in other states when both central agencies are offering onions at a lower price than us?"

In the initial phase, Nafed and NCCF procured 3 lakh quintals of onions and are presently in the process of acquiring an additional 2 lakh quintals in Nashik.

Khandu Deore, President of the Nashik District Onion Traders' Association, expressed their demands, saying, "We call for an indefinite suspension of onion auctions at all 15 Nashik APMCs, and we urge Nafed and NCCF to release the buffer stock directly into retail markets instead of routing it through APMCs." He added, "Furthermore, we request the central government to reconsider the 40% export duty imposed on onions last month and to reduce the market fees from Rs 1 per quintal to 50 paise."