Onion prices rebound after last week's dip
Onion prices at Maharashtra's Lasalgaon market have rebounded after a recent fall. The average wholesale price reached ₹40 per kg, with retail prices remaining high. Farmers hope to recover losses after two years of subdued prices. Concerns about the kharif crop and stored onion quality are driving prices up. The government claims prices are cooling in other markets due to buffer stock sales.
Pune: After a dip of over 9% last week, onion prices at Maharashtra's primary Lasalgaon wholesale market have climbed back up, indicating the government's market intervention and action against hoarders proved ineffective in maintaining the downward trend. On Tuesday, the average wholesale price of the staple kitchen ingredient rose to around ₹40 per kg, marking a 7% increase from ₹37 the previous week. The retail price of onions remained steep, ranging from ₹60-70 per kg.
At Lasalgaon, the largest onion market in Asia, the peak wholesale price hit ₹48 per kg, a new record. Industry insiders suggested that traders were apprehensive about potential government measures to curb overstocking, which led to a reduction of ₹4-5 per kg in wholesale prices. The price surge, however, came after a two-year period of subdued prices.
Experts believe that as onions have been priced low for an extended period, farmers are now hopeful of recovering their losses. Jaydatta Holkar, the director of Lasalgaon Agricultural Produce Market Committee (APMC), noted that while onion prices have nearly doubled in the last four to five months, farmers have faced issues with quality and weight loss during storage, as the crop was harvested four months ago. The government should not step in to curb prices, Holkar argued.
The rally in onion prices is primarily driven by expectations of a delay in the kharif crop and worries about the quality of the stored crop. Sources from Nashik revealed that loading the buffer stock of onions is taking longer due to poor quality.
The exports of onions have been sluggish due to various challenges, including freight issues and some buyers shifting their purchases to China, according to Vikas Singh, the vice president of Horticulture Produce Exporters Association.
The government, in a statement, claimed that onion prices have started to ease in centers such as Varanasi, Amritsar, Delhi, and nearby markets, where the sale of onions from the buffer stock has begun.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
