Average wholesale prices of onion in the country’s wholesale market at Lasalgaon have gone up to Rs 1,600 per quintal owing to high demand from other states.
Arrivals on Wednesday touched around 22,000 quintals and minimum prices were Rs 700 per quintal while maximum prices were Rs 1,760 per quintal.
On Tuesday, modal onion prices were Rs 1,435 per quintal while arrivals were 23,064 quintals. Market committee officials said that arrivals have increased on high demand from other states which have been hit by heavy rains and monsoons.
The red onion coming from Karnataka has been damaged due to the floods and rains have affected crops in Madhya Pradesh and Rajasthan as well, officials said. Since onion from Maharashtra is of high quality, there is good demand for that, the official said. In Bengaluru, onion prices have jumped 17 % and 25 % to trade at Rs 13.50 a kg and Rs 25 a kg, respectively.
Moreover, there is a long weekend ahead with Independence Day celebrations on Thursday followed by a working day and holidays on Saturday and Sunday. Therefore, farmers have brought onions to the market in anticipation of the long weekend ahead and demand from other states as well, the official said.
Around a week ago, the modal prices of onions were Rs 1,200 per quintal. In neighbouring Pimpalgaon Baswant, modal onion prices were Rs 1,611 per quintal.
Last week, the supply of onions had dropped due to rainfall and farmers were also busy in kharif planting. Those farmers who required funds for kharif sowing sold their stored onions last month and sought a minimum support price of Rs 2000 per quintal.
Commodities such as onion, primarily supplied from Nashik district of Maharashtra, recorded a uniform increase in price across the country because of disruptions in transportation last week.
Currently, onions arriving at the Agriculture Produce Market Committee are summer onions, harvested in March and April. These onions have a shelf life of five-six months and farmers prefer storing it with a hope of getting better price. The summer onions, stored by farmers, cater to the market until arrival of fresh kharif onions by mid-October.
The Centre has already created an onion buffer stock of 55,700 tonne in a bid to stabilise prices in case of scarcity during August-September period.
In March, the Centre had directed the National Agricultural Co-operative Marketing Federation of India (Nafed) to procure 50,000 tonne onions. The procurement cost is estimated at Rs 67.84 crore, excluding the charges for hiring storage facilities.
Nafed has procured around 22,200 tonne onion from APMCs at Lasalgaon, Pimpalgaon, Kalwan, etc, while 25,000 tonne has been procured in Pune, Ahmednagar, Solapur and Osmanabad districts.
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Source: Financial Express