Onion prices fall 35% after I-T raids on Nashik traders

NASHIK: The average wholesale onion price fell by 35% at the country’s largest wholesale onion market at the Lasalgaon Agriculture Produce Market Committee (APMC) on Thursday after the income tax department carried out surveys and searches in the offices, godowns and homes of seven onion traders in Nashik district of Maharashtra. After the sudden crash in wholesale onion prices, farmers stopped the auction at Lasalgaon and did not sell their produce.

The average wholesale onion prices on Thursday declined by 35% to Rs 900 per quintal at Lasalgaon as against Rs 1,400 per quintal on Wednesday. The minimum and maximum wholesale prices were recorded at Rs 500 and Rs 1,331 per quintal, respectively.

Jaydatta Holkar, chairman, Lasalgaon APMC told TOI that two of the seven traders, who were raided, are from Lasalgaon. “These traders have the capacity to buy 30% of total arrivals in the market. The action from the IT department created panic among onion traders leading to a crash of prices in the wholesale onion prices,” he added.


According to Holkar, some of the farmers who could not digest the fact that the prices have crashed in wholesale onion prices, stopped onion auction and refused to sell their produce at such a low price.

“They returned with their produce.” The average wholesale onion prices in the domestic markets had increased five times from Rs 450 per quintal on May 31 to Rs 2,450 per quintal on August 10, registering a 20-month high price due to short supply.

In city’s retail markets, onion prices had increased from Rs 10 to Rs 30 per kg after rise in wholesale onion prices in past two-three months, while the retail prices had touched Rs 40-50 per kg in various cities across the country. But the wholesale onion prices started declining after a two-member committee from the Union ministry of consumers affair had visited Lasalgaon on August 18 to check fluctuation in wholesale onion prices.

Last week, the Union ministry of agriculture had sought details pertaining to arrivals and wholesale prices from the Nashik district administration. The latter had sent details regarding arrival and their prices over three months at APMC.