Nashik: Onion Market Under Pressure As Lasalgaon Rates Fall To ₹49 Per Kg
Nashik: The onion market in Maharashtra has come under pressure as arrivals of new kharif onions from Karnataka and Andhra Pradesh have increased. At the Lasalgaon Agricultural Produce Market Committee (APMC), one of the state's major onion markets, wholesale prices of good-quality onions have declined from around ₹55 per kg last month to ₹49 per kg. However, despite the fall in wholesale prices,…
The onion market in Maharashtra, Maharashtra's Nashik district, is experiencing pressure as new kharif onions from Karnataka and Andhra Pradesh arrive. At the Lasalgaon APMC, wholesale prices for good-quality onions have dropped from around ₹55 per kg last month to ₹49 per kg. However, urban consumers continue to pay approximately ₹65 per kg for onions in retail markets.
Prices at Lasalgaon range from ₹1,000 to ₹4,900 per quintal, averaging ₹4,200 per quintal, with daily arrivals around 6,000 quintals. The influx of new kharif onions from Karnataka and Andhra Pradesh began after their harvest in late August, increasing supply. Traders and exporters are favoring the new crop, impacting demand for Nashik onions and putting downward pressure on prices.
Onion prices in Karnataka range from ₹35 to ₹51 per kg, depending on quality, which also influences Nashik's prices. Market observers attribute the price decline to imports of onions from Egypt, increasing supply. Lasalgaon APMC director Pravin Kadam notes that while new arrivals have increased, demand for Nashik onions from the hotel industry remains strong, making a sharp price drop unlikely at present.
Vikas Singh, a Nashik-based onion exporter, observes that overseas buyers are currently preferring the new harvest from Karnataka and Andhra Pradesh, affecting export demand for Nashik onions. If farmers foresee further price declines, they might release stored onions, increasing arrivals and further pressuring wholesale rates. However, balanced supply and demand could maintain current prices.
Despite wholesale prices falling to ₹49 per kg at Lasalgaon, good-quality onions maintain retail prices up to ₹65 per kg. Traders account for a 20-30% loss in onions sold for retail, recovering these costs through retail prices. Thus, wholesale price declines don't immediately translate to lower consumer prices. With increasing kharif onion arrivals from various states until Diwali, the market is expected to remain volatile, with prices depending on arrivals, export demand, and domestic consumption. A clearer trend is anticipated only after the arrival of the new summer onion crop.
Written by urgent.news from Free Press Journal's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
